Preheat your oven to 350°F (175°C) and line two baking sheets with parchment paper.

In a large mixing bowl, cream the softened butter and sugar together until light and fluffy, about 2-3 minutes.

Add the eggs and vanilla extract to the butter mixture, and beat until well combined.

In a separate bowl, whisk together the all-purpose flour, baking powder, baking soda, and salt.

Gradually add the dry ingredients to the wet ingredients, mixing until a soft dough forms.

Gently fold in the rainbow sprinkles until evenly distributed throughout the dough.

Using a cookie scoop or a tablespoon, portion out the dough and roll into balls. Place the dough balls on the prepared baking sheets, spacing them about 2 inches apart.

Bake in the preheated oven for 10-12 minutes, or until the edges are lightly golden. Do not overbake to ensure a soft texture.

Remove the cookies from the oven and let them cool on the baking sheet for 5 minutes before transferring to a wire rack to cool completely.