Coinbase Seeks CFTC Approval for XRP Futures Amid Regulatory Shifts

Coinbase is making moves to expand its crypto derivatives offerings by filing with the US Commodity Futures Trading Commission (CFTC) to introduce futures contracts for XRP.

This decision marks a significant step for Coinbase, as it seeks to provide a regulated and efficient way for investors to gain exposure to XRP, one of the most liquid digital assets. The filing indicates that the new contract could launch as early as April 21.

The proposed XRP futures contract will be monthly, cash-settled, and margined, trading under the symbol XRL. Each contract will represent 10,000 XRP and settle in US dollars. Trading will cover the current month plus the following two months. To manage volatility, trading will be paused if the spot XRP price fluctuates more than 10% within an hour.

Coinbase’s decision to file comes after the CFTC took a more accommodating stance on crypto derivatives, easing previous regulatory barriers. This development has boosted institutional confidence, particularly following Ripple’s recent regulatory victory that clarified XRP’s status. Notably, Coinbase has already engaged with Futures Commission Merchants (FCMs) to gain support for the launch.

READ MORE:

Retail Investors Fuel XRP Surge While Bitcoin Lags Behind

While Coinbase aims to be a prominent player in the XRP futures space, it’s not the first to make such a move. Bitnomial, a Chicago-based exchange, launched the first CFTC-regulated XRP futures contract in March. Nevertheless, Coinbase’s entry could further legitimize XRP trading, especially as speculation about an XRP ETF continues to swirl. Market sentiment suggests a 74% chance of ETF approval by 2025, with more cautious optimism for approval by mid-year.

On the regulatory front, Coinbase recently gained ground as Illinois decided to withdraw its lawsuit against the exchange regarding staking services. This marks the fourth state to drop its legal action, following similar decisions from Vermont, South Carolina, and Kentucky. The retreat comes as the SEC also opted to abandon its federal lawsuit against Coinbase earlier this year, signaling a potential easing of regulatory pressures on the exchange.

Illinois’ decision coincides with the introduction of a Bitcoin strategic reserve bill, aimed at promoting digital asset innovation within the state. The bill, put forth by State Representative John M. Cabello, highlights the potential of Bitcoin as a decentralized and finite asset, positioning Illinois as a forward-thinking state in the crypto space.

Alexander Stefanov