Coinbase Files SEC Notices to Launch US Single-Stock Perpetual Futures

Coinbase has taken a significant step toward introducing single-stock perpetual contracts to the U.S. market. The company filed two notice registrations with the Securities and Exchange Commission (SEC) on Sept. 1, paving the way for its regulated derivatives venues to offer these products.

The filings involve two distinct entities. Coinbase Derivatives, LLC submitted Form 1-N to register as a security futures exchange. Meanwhile, Coinbase Financial Markets, Inc. filed Form BD-N to act as a limited-purpose security futures broker-dealer. These documents do not reveal a launch date, the specific stocks that would be supported, or any proposed leverage limits.

Dual SEC-CFTC Regulatory Pathway

The filings establish a clear regulatory route under the joint oversight of the SEC and the Commodity Futures Trading Commission (CFTC) . Form 1-N lets a CFTC-regulated exchange register with the SEC solely for trading security futures products. Coinbase Derivatives has been a CFTC-designated contract market since 2020.

On the brokerage side, Form BD-N allows an eligible CFTC registrant to become a broker-dealer for security futures trading. The applicant must already be registered with the CFTC as a futures commission merchant or introducing broker. Coinbase Financial Markets meets this criterion, already holding CFTC registration as a futures commission merchant.

These filings confirm that security futures—contracts on individual stocks or narrow-based indexes—fall under the joint authority of both agencies. The dual registration is essential because such products carry features of both securities and futures.

The SEC notices do not include contract terms, trading hours, or final clearance for commercial rollout. However, they signal Coinbase’s intent to work closely with both regulators as it expands its U.S. derivatives offerings.

Extending an Existing International Product

Coinbase already offers single-stock perpetual futures to eligible customers outside the U.S., having launched them in March. That international lineup initially included synthetic exposure to major tech names like Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta, and Tesla, along with contracts tied to SPY and QQQ ETFs.

Those overseas products trade continuously, including weekends, with leverage up to 10x for stock perps and 20x for ETF perps. Positions settle in USDC and can be cross-margined with other holdings.

It remains unclear if the U.S. contracts will mirror those specifications. Coinbase has not confirmed whether domestic trading would be 24/7, settle in USDC, or offer similar leverage.

Perpetual futures differ from traditional futures by having no expiration date. A funding mechanism keeps prices near the underlying asset’s value, allowing traders to hold leveraged positions without owning shares. However, holders do not receive shareholder rights like voting.

Expanding Regulated Derivatives Access

The new filings follow a series of regulatory wins for Coinbase’s derivatives business. In May, CFTC staff granted Coinbase Financial Markets relief related to eligible U.S. institutions accessing Deribit derivatives. In June, U.S. approval was granted for Coinbase to offer global crypto perpetual futures, a move CEO Brian Armstrong said required years of compliance work.

Coinbase has also expanded into Canada, launching 23 futures for eligible investors on Sept. 2. These cover perpetual and dated contracts for Bitcoin, Ether, Solana, and 20 other assets, with leverage up to 10x.

Market data as of Sept. 3 showed Coinbase Derivatives with about $1.75 billion in 24-hour volume, compared to $9.7 billion on Coinbase International Exchange. These figures capture all derivatives activity, not just stock perps.

Regulatory and Market Challenges

Coinbase’s move comes amid ongoing legal debates over perpetual contract classification. In June, CME Group sued the CFTC, arguing that crypto perpetuals fit the legal definition of swaps under the Dodd-Frank Act. The CFTC dismissed the case as “frivolous,” and no court ruling has yet changed the regulatory landscape.

CFTC officials have also flagged risks in perpetual markets, including leverage, funding-rate volatility, and price manipulation. Stock perps present additional concerns during hours when underlying equity markets are closed, as trading can continue without fresh price data.

Coinbase’s international risk disclosures warn of liquidity and volatility risks outside regular stock-market hours. The Sept. 1 SEC filings do not specify whether U.S. contracts would pause during market closures or how funding calculations, margin requirements, and position limits would be handled.

Despite these uncertainties, the registrations mark a critical step for Coinbase in bringing a novel product to U.S. traders, expanding its regulated derivatives ecosystem while navigating complex oversight.

*This article is based on regulatory filings and official announcements. Details may evolve as the SEC and CFTC review the submissions.*