Coinbase Receives Approval for Crypto Futures Trading in the US

Summary

Analysts at JMP Securities believe that Coinbase’s approval to offer crypto futures trading in the US is evidence of the resilience of the crypto industry. They see this approval as validation for the domestic crypto sector and a step towards countering the narrative that the American crypto industry is being pushed offshore. The approval also strengthens Coinbase’s position in their legal battle with the SEC. Coinbase received approval from the National Futures Association to operate a marketplace for futures contracts, allowing them to introduce futures contracts for Bitcoin and Ether. The analysts predict that revenue from the futures trading business could grow to hundreds of millions of dollars over the first two years and eventually rival Coinbase’s spot trading business.

Key Points

Coinbase’s approval for crypto futures trading in the US is seen as evidence of crypto’s resilience.
The approval validates the domestic crypto sector and counters the narrative of the industry being pushed offshore.
The approval strengthens Coinbase’s position in their legal battle with the SEC.
Coinbase received approval to operate a marketplace for futures contracts, allowing them to introduce futures contracts for Bitcoin and Ether.
The analysts predict that the futures trading business could generate significant revenue for Coinbase and rival their spot trading business.

Hot Take

The approval for Coinbase to offer crypto futures trading in the US is a significant milestone for the industry. It not only signifies the resilience of crypto but also validates the domestic crypto sector. This approval strengthens Coinbase’s position and sets them up for significant growth in the futures trading business. With the potential to generate hundreds of millions of dollars in revenue, futures trading could become a major part of Coinbase’s business. However, it will require time to educate customers and scale the activity across their platform. Nonetheless, this development is a positive step for Coinbase and the crypto industry as a whole.