Coinbase Receives Approval for Regulated Futures Trading in the US
Coinbase, despite facing an investigation by the SEC, has received approval from the NFA to offer regulated futures trading services in the United States. Here are the key points:
– Coinbase has been seeking regulatory approval from the NFA since September 2021.
– The NFA, established by the CFTC, is responsible for self-regulation in the futures and derivatives markets.
– Coinbase acquired FairX and rebranded it to Coinbase Derivatives Exchange as part of their efforts.
– The exchange will offer futures trading to “eligible” US customers, but the eligibility criteria are not clarified.
– The community sees this development as a positive step towards broader crypto regulation.
Crypto Community Reacts to the Announcement
The community views Coinbase’s approval for regulated futures trading as a significant development. It opens up crypto derivatives for US retail customers, with the global crypto derivatives market representing a majority of crypto trading volume worldwide.
Regulatory Challenges and Lawsuit
Although Coinbase has received approval for futures trading, it still faces regulatory challenges in the US. The company is currently trying to dismiss a lawsuit filed by the SEC, accusing it of operating an unregistered securities exchange. However, Coinbase has received support from Wyoming Senator Cynthia Lummis, who submitted a brief in support of the company.
Closing Thoughts: Positive Progress Amidst Regulatory Challenges
While Coinbase faces regulatory hurdles and legal battles, the approval for regulated futures trading is a positive step towards broader crypto regulation. It showcases the growing acceptance and recognition of cryptocurrencies in the traditional financial landscape. Despite the lack of clarity regarding eligibility criteria, Coinbase’s move is seen as a significant development for US retail customers.
By
By
By
By
By