In the wake of a recent Federal Reserve meeting, Bitcoin‘s value has begun to climb, successfully surpassing the critical $65,800 threshold. This resurgence coincides with Coinbase‘s bid to expand its trading services to include futures for three prominent cryptocurrencies. This initiative, pending regulatory approval by the Commodity Futures Trading Commission (CFTC), could potentially enhance the valuations of these digital assets considerably.
Prospects for Dogecoin, Litecoin, and Bitcoin Cash
Coinbase Derivatives LLC has submitted a formal application to the CFTC, targeting a March 7 approval to deal with futures services within the United States specifically for Dogecoin, Litecoin, and Bitcoin Cash. A successful outcome from the CFTC would not only authorize these services but also relieve the aforementioned cryptocurrencies from the Securities and Exchange Commission’s classification of being securities.
The three cryptocurrencies in question utilize Proof of Work (PoW) consensus mechanisms, standing in contrast to the Proof of Stake (PoS) systems that have attracted SEC scrutiny. Last year’s debates around PoW-based altcoins possibly falling under the jurisdiction of the CFTC highlighted the potential regulatory easing for these digital currencies.
Recent revelations about Coinbase’s application, disclosed 13 days after submission, have already sparked price surges over 5% for the associated altcoins. With the absence of CFTC objections, futures trading for these cryptocurrencies is set to launch on April 1.
Implications for the Crypto Market
The emerging scenario could signal a broader implication for the crypto market, with regulatory clarity potentially leading to increased institutional participation and a more favorable trading environment for the involved cryptocurrencies.