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Heat your oven to 350°F (175°C) and prepare a baking sheet by lining it with parchment paper.
In a large bowl, cream together the softened butter and sugar until light and fluffy, using a stand mixer or hand mixer on medium speed.
Add the egg and vanilla extract, beating until fully combined.
In a separate bowl, combine the flour, baking powder, baking soda, and salt, whisking them together until evenly mixed.
Gradually add the dry mixture to the wet ingredients, mixing on low speed until a dough forms.
Gently fold in the rainbow sprinkles, being careful not to break them apart.
Scoop 1.5-inch balls of dough and place them on the prepared baking sheet, leaving about 2 inches of space between each.
Bake for 8 to 10 minutes until the edges are just set. The centers might look slightly underbaked, but they will continue to firm up as they cool.
Let the cookies cool on the baking sheet for 5 minutes before transferring them to a cooling rack to finish cooling completely.