Coinbase said on Tuesday that its derivatives exchange now offers futures contracts for Solana (SOL) and Hedera (HBAR), expanding its suite of products to cover more cryptocurrencies with pending applications for spot ETFs in the U.S.
Regulated by the CFTC, Coinbase said in a blog post that the exchange’s derivatives arm now offers futures contracts for 19 total assets, including Dogecoin, Litecoin and gold, among other altcoins.
Solana, Hedera, Dogecoin, and Litecoin are part of an emerging race by crypto and more traditional financial services firms to address soaring demand for crypto-focused investment products. In recent weeks, these companies have submitted a flurry of applications for spot crypto ETFs, a result of the more crypto-friendly policies of the new Trump administration.
Last week, the Securities and Exchange Commission began weighing applications for Solana ETFs. The filings could expand investors’ options on both a retail and institutional level, beyond Bitcoin and Ethereum in the U.S.
The SEC’s deadline for these applications can be extended up to 240 days. Still, the regulator’s timeline begins with a 21-day review period, meaning it may conclude next month.
The link between Coinbase’s new futures contracts and the CFTC is notable. In a 2023 lawsuit against Coinbase, the SEC alleged that Solana traded on its platform as a security, which should be subject to the SEC’s rules and disclosure regime.
With the resignation of former SEC Chair and crypto skeptic Gary Gensler, the SEC is now reconsidering its approach to the digital assets industry. The lawsuit against Coinbase has been frozen until a higher court can weigh in amid conflicting rulings on digital assets, while the SEC has vowed to work toward clear crypto rules with the CFTC under new leadership.
Coinbase’s ability to offer regulated futures products for Solana may bear on the agency’s decision. In approving spot Ethereum and Bitcoin ETFs, the SEC has weighed the presence of a regulated futures market to address fraud and market manipulation concerns.
“All commodity-based ETPs, [or] exchange-traded products, have had a regulated futures market,” Bitwise CIO Matt Hougan told Decrypt earlier this month.
With the SEC shifting its approach to crypto, regulated Solana futures in the U.S. may not change much, according to Gabe Shelby, head of research at CF benchmarks.
The firm provides reference rates underpinning Bitcoin and Ethereum derivatives on CFTC-regulated venues like the Chicago Mercantile Exchange, and Shelby told Decrypt the SEC’s framework for approving crypto-focused ETFs may change.
“It’s very likely that we get to a point where a regulated futures market isn’t entirely necessary to launch additional tokens,” he said. “That’s a real possibility with this new regime.”
Edited by James Rubin
