Coinbase Seeks US Approval for 24/7 Stock Perpetuals
Crypto exchange files with SEC and awaits CFTC nod to offer leveraged stock derivatives stateside.
1Regulatory Milestone
Coinbase took two critical regulatory steps on September 1, 2026, filing Form 1-N to register as a security futures exchange and Form BD-N as a limited-purpose broker-dealer. These SEC submissions establish the legal framework for offering single-stock perpetual futures to US traders. The company's shares surged 10% to $192.70 following the announcement, reflecting market optimism about this expansion into traditional finance derivatives.
2Product Mechanics
Perpetual futures ('perps') are unique derivatives without expiration dates, using funding rate mechanisms to maintain price alignment with underlying assets. Coinbase already offers 10x leveraged perps on tech giants like Apple and Tesla to international users since March 2026, settled in USDC stablecoin. The new filings aim to bring this 24/7 trading model to US investors, currently barred from such products due to regulatory restrictions.
3Strategic Expansion
The move follows Coinbase's $2.9 billion acquisition of Deribit, signaling its derivatives ambitions. Executives envision 'one account for everything you trade' with instant settlement. This comes as competitors like Hyperliquid also seek US entry, with former President Trump noting CFTC efforts to onboard such platforms legally. The filings position Coinbase to potentially dominate regulated crypto-to-traditional finance bridges.
4Regulatory Hurdles
While SEC filings establish necessary legal entities, critical CFTC approval for contract terms remains pending. Regulators must decide whether to permit 10x leverage on single stocks—a feature available internationally—or impose stricter limits. Coinbase already operates CFTC-regulated crypto perps stateside, suggesting existing infrastructure could support equity derivatives if approved.
5Market Context
Coinbase's initial non-US perps covered the 'Magnificent Seven' tech stocks plus SPY and QQQ ETFs. The product expansion aligns with CEO Brian Armstrong's June 2026 roadmap including pre-IPO derivatives and tokenized stocks. Policy chief Faryar Shirzad emphasized the need for SEC-CFTC coordination to keep US markets competitive with global crypto derivatives offerings.
6Investor Implications
Successful approval would let US traders maintain leveraged positions on stocks indefinitely without ownership—a capability currently limited to offshore platforms. The 24/7 nature contrasts with traditional market hours, while USDC settlement avoids banking system dependencies. This could attract both retail and institutional participants seeking crypto-like flexibility for equities.
7Competitive Landscape
The initiative places Coinbase against traditional brokers and crypto-native firms alike. While its existing brand recognition and regulatory relationships provide advantages, competitors are pursuing similar strategies. Kraken's parent company Payward is collaborating with Hyperliquid, indicating a broader industry push to merge crypto and traditional finance derivatives markets.
8Regulatory Precedent
This case tests how US agencies adapt frameworks designed for traditional markets to crypto-adjacent innovations. Approval could establish a template for other asset classes, while rejection might reinforce the regulatory arbitrage driving such products offshore. The outcome will significantly influence how crypto exchanges evolve into full-spectrum financial platforms.
Original article: Bitcoin News — Coinbase Seeks US Approval for 24/7 Stock Perpetuals