Coinbase Adds Solana and Hedera Futures as SEC Reviews ETF Applications

TLDR

• Coinbase has launched CFTC-regulated futures contracts for Solana and Hedera, bringing their total futures offerings to 19 assets
• Multiple companies have submitted applications for spot crypto ETFs, including for Dogecoin, XRP, and Solana
• The SEC’s new leadership under Trump administration is reconsidering its approach to digital assets regulation
• The SEC lawsuit against Coinbase regarding Solana’s classification has been frozen pending higher court review
• The necessity of regulated futures markets for ETF approval may change under new SEC policies

Coinbase has expanded its derivatives exchange offerings to include futures contracts for Solana (SOL) and Hedera (HBAR). The addition brings the total number of assets available for futures trading on the platform to 19, including other cryptocurrencies like Dogecoin and Litecoin, as well as gold.

The launch comes at a time when both crypto companies and traditional financial firms are racing to meet growing demand for crypto investment products. The move follows recent approvals of spot Bitcoin and Ethereum ETFs in the United States, marking a shift in the regulatory environment.

The CFTC-regulated futures contracts arrive as various fund managers submit applications for spot crypto ETFs beyond Bitcoin and Ethereum. These applications cover a range of cryptocurrencies, from established tokens like Solana and XRP to meme-inspired assets like Dogecoin.

The Securities and Exchange Commission has begun reviewing applications for Solana ETFs. While the agency can extend its review period up to 240 days, the initial evaluation phase lasts 21 days, suggesting preliminary decisions could emerge as soon as next month.

The timing of Coinbase’s futures launch intersects with evolving regulatory dynamics. Previously, the SEC under former Chair Gary Gensler had filed a lawsuit against Coinbase, claiming that Solana and other cryptocurrencies traded on its platform should be classified as securities subject to SEC oversight.

However, the regulatory landscape has shifted with Gensler’s departure. The SEC lawsuit against Coinbase has been temporarily suspended while awaiting guidance from a higher court, amid contradictory rulings regarding digital assets classification.

Under the Trump administration, the SEC has established a new crypto task force. Commissioner Hester Peirce, known as “Crypto Mom,” leads this initiative and has outlined plans to develop clearer regulatory frameworks for digital assets.

The ETF Gateway

The availability of regulated futures products for Solana through Coinbase may influence the SEC’s decision-making process. Historical precedent shows that the presence of regulated futures markets has been a key factor in the SEC’s approval of commodity-based exchange-traded products.

Bitwise CIO Matt Hougan highlighted this pattern, noting that all previously approved commodity-based ETPs have had corresponding regulated futures markets. This relationship between futures markets and ETF approvals has been consistent across various asset classes.

The expansion of Coinbase’s futures offerings demonstrates the growing sophistication of crypto investment products. These new contracts provide traders with additional tools for managing risk and exposure to different digital assets.

For institutional investors, regulated futures contracts offer a familiar framework for engaging with crypto markets. The CFTC oversight provides a level of regulatory clarity that many traditional financial institutions require before participating in cryptocurrency trading.

The new futures contracts also arrive during a period of increased interest in alternative cryptocurrencies beyond Bitcoin and Ethereum. Solana, in particular, has attracted attention for its high-speed blockchain network and growing ecosystem of applications.

Gabe Shelby, head of research at CF Benchmarks, suggests that the regulatory requirements for crypto ETF approvals might evolve under the new SEC leadership. His firm provides reference rates used in Bitcoin and Ethereum derivatives trading on CFTC-regulated platforms like the Chicago Mercantile Exchange.

According to Shelby, the traditional requirement for regulated futures markets might become less strict for future crypto ETF approvals. This potential shift could streamline the path for additional cryptocurrency investment products to reach the market.

The SEC is now working to coordinate with the CFTC to establish clear guidelines for the digital asset industry. This inter-agency cooperation represents a departure from previous approaches to crypto regulation.