Coinbase Receives Approval to Offer Crypto Futures Trading in the U.S.
Cryptocurrency exchange Coinbase has received approval from the National Futures Association (NFA) to operate as a Futures Commission Merchant (FCM), allowing it to list crypto futures in the U.S. This makes Coinbase the first crypto-first platform in the country to offer regulated and leveraged crypto futures alongside traditional spot trading.
Key Points:
- Coinbase Financial Markets secured approval from the NFA to operate as an FCM.
- The approval allows Coinbase to offer regulated and leveraged crypto futures in the U.S.
- Coinbase is the first crypto-focussed platform in the country to offer this service.
- Andrew Sears, CEO of Coinbase Financial Markets, believes offering regulated crypto futures is crucial for broader participation in the crypto economy.
- Cboe Digital, the crypto unit of Cboe Global Markets, also received approval from the Commodity Futures Trading Commission (CFTC) to offer margined bitcoin and ether futures contracts.
Coinbase’s approval comes nearly two years after applying for it. The NFA is a self-regulatory organization with designation from the CFTC, which is the federal derivatives regulator. This move aligns with CFTC Commissioner Christy Goldsmith Romero’s belief in bringing crypto activities into the regulated space to protect customers and ensure oversight, accountability, transparency, and risk management.
Hot Take:
Coinbase’s approval to offer regulated crypto futures in the U.S. is a significant milestone for the platform and the broader crypto industry. It not only opens up new opportunities for investors but also demonstrates the growing acceptance and integration of cryptocurrencies into the traditional financial system. With Coinbase leading the way, other platforms may also seek approval to offer similar services, further driving the adoption and legitimacy of cryptocurrencies.
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