Coinbase (COIN.US), one of the largest cryptocurrency trading platforms in the United States, is taking a key regulatory step by seeking approval to allow U.S. investors to engage in 24/7 leveraged trading on individual stocks via perpetual futures without physically holding the underlying shares. If regulatory approval is granted, this move would introduce one of the most popular trading models from the cryptocurrency market into the U.S. regulated marketplace, further blurring the lines between traditional securities and digital asset trading.

Coinbase submitted an application to the U.S. Securities and Exchange Commission (SEC) this week, outlining plans to launch single-stock perpetual futures. The company will subsequently…