Coinbase, a crypto exchange, believes that Dogecoin's sustained popularity indicates it has transcended its origins as a meme and has become a significant player in the cryptocurrency industry. Consequently, the exchange plans to introduce futures trading for Dogecoin along with other cryptocurrencies.

In correspondence addressed to the United States Commodity Futures Trading Commission (CFTC) on March 7, Coinbase Derivatives disclosed its intention to roll out cash-settled futures contracts for Dogecoin, Litecoin, and Bitcoin Cash by April 1. Notably, the letters indicated that Coinbase Derivatives might list these futures contracts on its platform without awaiting official approval from the CFTC.

Coinbase clarified its strategy, stating that it would use the "self-certification" approach to launch the futures contracts, provided they adhere to the regulatory criteria outlined by the agency.

"The Coinbase Derivatives hereby seeks self-certification for the initial listing of the Dogecoin Futures contract, intended for trading on the Exchange on or after April 1, 2024," stated the letter concerning the Dogecoin futures product.

Coinbase justified its decision to list Dogecoin by asserting that the cryptocurrency had evolved beyond its origins as a meme and had become a fundamental component of the crypto industry.

“Dogecoin's sustained popularity and robust community backing indicate that it has transcended its initial meme status to establish itself as a cornerstone of the cryptocurrency ecosystem.”

At the time of publication, Dogecoin's price had surged by 17%, reaching $0.15, according to data from CoinMarketCap.

While some observers on social media expressed confusion over the move, analysts suggested that Coinbase's decision to list futures contracts might have been a strategic maneuver to prompt action from the Securities and Exchange Commission (SEC).

In a post on March 20, Bloomberg ETF analyst James Seyffart suggested that the filings could be a strategic move to compel the SEC to refrain from categorizing crypto assets using the same proof-of-work consensus mechanism as Bitcoin as “securities.”

“I wonder if the SEC would oppose categorizing these as 'commodity futures' versus 'securities futures,’” Seyffart wrote. “Given that they are all based on Bitcoin, claims that 'these are securities' would be difficult to justify following the approval of spot Bitcoin ETFs.”

In 2022, Coinbase acquired the CFTC-regulated FairX derivatives exchange with the aim of introducing crypto derivatives trading for its U.S. customers.

At the time of the acquisition, Coinbase stated, “We aim to make the derivatives market more accessible for our millions of retail customers.”