Coinbase facilitates access to regulated derivatives for eligible US customers through a platform called Coinbase Financial Markets
Coinbase receives regulatory approval
Coinbase, the largest US cryptocurrency exchange by trading volume, has announced that it has received regulatory approval to introduce federally regulated cryptocurrency trading to eligible customers in the US. This development led to a significant increase in the company’s share price just before the opening bell on Wednesday. Earlier in June, the US Securities and Exchange Commission (SEC) took legal action against both Binance and Coinbase. The regulator alleged that these entities were engaged in illegal activities by operating as stock exchanges without proper registration under the SEC.
Coinbase announced on Wednesday that it has successfully received regulatory approval from the National Futures Association (NFA) to operate as a futures commission merchant. The application for this designation was formally submitted to the NFA in 2021. With this newly obtained approval, Coinbase will facilitate access to regulated derivatives for eligible US customers through a platform called Coinbase Financial Markets. Both the Commodity Futures Trading Commission (CFTC) and the NFA are responsible for overseeing these activities.
In a Twitter announcement, Coinbase specified that it is now able to offer cryptocurrency futures contracts specifically for Bitcoin and Ether. These futures contracts are financial contracts that allow the purchase or sale of an asset at a predetermined price on a date specified in the contract in the future.
Coinbase views this milestone as extremely important and sees it as a pivotal moment in bringing regulated crypto products to its US customer base. The company emphasized its commitment to maintaining a regulated and compliant operating framework, reinforcing its role as a trusted and secure platform serving the needs of crypto-natives. There is currently an announcement on the Coinbase website announcing the imminent availability of US regulated futures trading. Those interested are asked to join the waiting list for these offers. Notably, Coinbase previously announced plans to launch bitcoin and ether futures trading specifically for institutional investors through the Coinbase Derivatives Exchange, which is expected to launch in June.