Faryar Shirzad: Coinbase proposes three recommendations to CFTC and SEC regarding perpetual contracts and predictive market regulation

Faryar Shirzad, Chief Policy Officer of Coinbase, stated that Coinbase has submitted a response to the joint solicitation of opinions by the CFTC and SEC on the definition and compliance framework of perpetual contract products, and has put forward three recommendations: establishing a flexible compliance framework to promote customer choice, competition, and innovation; Classify equity perpetual derivatives under securities and futures regulation; Allow contracts related to securities listed on exchanges regulated by any regulatory agency. Coinbase stated that perpetual derivatives and prediction markets provide investors with new investment and risk management tools, but the complex jurisdictional boundaries between the two regulatory agencies impose inconsistent requirements on economically relevant products, hindering market participants' ability to provide and integrate products through a single US regulated technology stack.