Coinbase says ‘jurisdictional overlap’ is blocking U.S. equity perps – Here’s what it means

Coinbase exchange has requested the U.S CFTC and SEC to offer clear and harmonized regulations for equity perpetual futures (perps). 

Equity perps, or RWAs (real-world asset tokenization), allow traders and investors to take leveraged positions on tokenized stocks and ETFs. Unlike Option contracts, analysts view them as a better way of hedging, especially for crypto natives and less sophisticated investors. 

Collectively, RWAs and commodity perps (those tracking gold, oil, etc) have exploded offshore. 

Although the CFTC recently approved crypto perps for Kalshi and Coinbase, there is no similar framework for equity perps. In fact, the regulators recently called for public input on how to treat the products. 

In response, Coinbase asked for equity perps to be treated as ‘security futures.’ Additionally, the exchange wants any entity registered with either the SEC or CFTC to be allowed to list equity perps without applying for extra licenses. 

For his part, Coinbase’s Chief Policy Officer, Faryar Shirzad, said, 

It’s crucial that convoluted definitions and jurisdictional overlap be addressed so the US can onshore and regulate activity, safely open up opportunity to US consumers.

Coinbase joins Hyperliquid for equity perps clarity push

Notably, Coinbase reiterated that it supports any alternative compliance framework that offers a smooth and streamlined licensing process for the products. 

According to Shirzad, this was the only way to avoid duplicate and friction associated with separate applications and oversight. 

Earlier this week, Hyperliquid’s advocacy arm, the Hyperliquid Policy Center (HPC), made a similar plea to U.S regulators. 

For HPC, the U.S lost the lead on perps because the CFTC failed to clearly define whether they are futures or swaps. 

However, Hyperliquid noted that approval of Kalshi and Coinbase crypto perps marked the beginning of much-awaited regulatory clarity. Now, the HPC wants regulators to expand the guidelines to equity perps. 

According to a perp-focused decentralized exchange, treating equity perps as ‘security perps’ would allow the products to be offered onshore. 

Worth noting, most Hyperliquid trading volume is currently skewed towards equity and commodity perps. Also, the firm seeks regulated entry into the U.S, and treating the so-called equity perps as security futures would work in its interest. 

Unfortunately, even if the regulators take this position, incumbents may likely challenge it in court. In fact, CME sued the CFTC over Kalshi BTC perps approval.  

That said, RWA perps have grown 4X, with Open Interest (OI) rising from $1B in Q1 to over $4B as of Q3. The segment is dominated by public equities, followed by metals, ETFs, and oil. The growth could likely explode further if the U.S grant access to these products. 

Final Summary

• Coinbase joined Hyperliquid to request the CFTC and SEC to treat equity perps as security futures 
• RWA perps have grown 4x in 2026, with OI rising from $1B to $4.5B, led by public equities.