Cryptocurrency exchange Coinbase has received approval from the National Futures Association (NFA) to offer cryptocurrency futures investments to eligible customers in the United States. The company announced this milestone on August 16, revealing that it is now officially permitted to operate as a Futures Commission Merchant (FCM) platform.
Coinbase will be introducing Bitcoin (BTC) and Ether (ETH) futures contracts through its Commodity Futures Trading Commission (CFTC)-regulated derivatives exchange. However, the futures trading service will not be immediately available in the United States. Interested participants can join a waitlist to get early access.
The approval from the NFA is seen as a critical step in Coinbase’s mission to operate as a regulated and compliant business, providing a trusted and secure platform for its customers. The exchange emphasizes that the ability to trade using margin offers customers leverage and easier access to the crypto market compared to traditional spot trading.
Coinbase’s entry into the crypto futures market in the United States is significant, as the exchange claims that the global crypto derivatives market accounts for 75% of crypto trading volume worldwide. By expanding its services to include futures trading, Coinbase aims to cater to institutional investors and provide them with additional investment opportunities.
This development comes amidst Coinbase’s legal battle with the U.S. Securities and Exchange Commission (SEC). The regulator filed a lawsuit against Coinbase, accusing the exchange of violating local securities laws by selling unregistered securities. However, this approval is a separate achievement and a step forward for Coinbase in expanding its services while complying with regulations.
