Coinbase Asks the SEC for the Green Light

Coinbase has, according to Yahoo Finance, filed a formal application with the U.S. Securities and Exchange Commission (SEC) with the aim of offering equity perpetual swaps to its customers. This is a type of derivative contract that gives traders exposure to the price movements of traditional stocks and indices — such as Apple, Tesla, the S&P 500, and the Nasdaq 100 — without actually owning the underlying securities.

The application represents a significant strategic move by Coinbase, which is looking to compete in a space where unregulated foreign platforms have long operated with few constraints.

An SEC approval would be the first time equity perpetuals receive full regulatory legitimization in the U.S. market.
Coinbase Seeks SEC Approval for Equity Perpetuals - Bilde 1

What Are Equity Perpetual Swaps?

Equity perpetuals work in the same way as the crypto market's well-established perpetual contracts, but with stocks and indices as the underlying assets. There is no expiration date — traders can hold positions for as long as they maintain sufficient margin. Settlement occurs in cash, often in stablecoins such as USDC or USDT, meaning no actual shares change hands.

A key mechanism is the so-called "funding rate" — a periodic payment between buyers and sellers, typically every eight hours — which keeps the contract price anchored close to the spot price of the underlying stock. The mechanism was originally introduced by crypto exchange BitMEX in 2016 and has since become the industry standard.

~75%
Share of the crypto derivatives market made up of perpetual swaps
20x
Typical maximum leverage on equity perpetuals
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A Rapidly Growing Market

Equity perpetuals have already gained a solid foothold on global crypto platforms. According to research data, Bitget is set to lead the field as of September 1, 2026, with as many as 304 listed TradFi perpetual contracts. Kraken launched what it described as the world's first regulated, tokenized equity perpetual futures in February 2026, available to eligible customers outside the United States with up to 20x leverage.

Mark Greenberg, Global Head of Consumer at Kraken, has described the product category as "a new chapter for global capital markets" in which stocks, indices, and commodities are traded with the same speed and flexibility as crypto.

A notable advantage of equity perpetuals is the ability to trade traditional stock markets 24 hours a day, seven days a week — well beyond standard exchange trading hours.

Risks and Regulatory Uncertainty

It is important to emphasize that equity perpetuals carry significant risk. High leverage can amplify losses just as much as gains, and sudden swings in funding rates can erode returns on positions held over time. In extreme market conditions, liquidity for non-crypto perpetuals can also dry up quickly.

The regulatory landscape for such products is still evolving and varies considerably across jurisdictions. It is therefore by no means certain that the SEC will grant Coinbase the requested approval — and neither the timeline nor the outcome has been confirmed as of today.

What Happens Next?

Coinbase's application will now go through the SEC's standard review process. A potential approval would open the door for U.S. customers — under regulatory oversight — to gain stock exposure via crypto infrastructure. This could potentially shift the competitive dynamics significantly in favor of regulated platforms over the unregulated foreign exchanges that currently dominate the market for such products.