Crypto News | Coinbase Seeks SEC Approval for Equity Perpetuals

On September 3, Coinbase filed documents with the U.S. Securities and Exchange Commission seeking authorization to offer equity perpetuals. It is another sign of the growing overlap between infrastructure born in crypto and products from traditional finance.

What are equity perpetuals?

They are derivatives linked to the price of a stock and, unlike traditional futures, they do not have an expiration date. That does not mean the holder owns the underlying company's shares. Structure, rights, leverage and settlement can be very different from direct ownership.

Why the news matters

If authorized, the initiative would further expand the boundary between crypto markets and traditional financial markets. But the request is still subject to SEC review: filing documents is not the same as receiving approval.

The Crypto Mentor point

Before using any derivative, it is essential to understand what you actually hold, how leverage works, which conditions can trigger losses or liquidation, and which regulatory framework applies. A product that tracks the price of a share is not necessarily the same as owning that share.

Verified source: Reuters

This article is educational information, not financial advice.