Coinbase to Introduce Cryptocurrency Futures Trading in the US. Coinbase Global announced on Wednesday that it has successfully obtained regulatory approval to offer cryptocurrency futures trading to its U.S. retail customers. This achievement marks a significant regulatory triumph for the company, even as it navigates an ongoing legal battle with the Securities and Exchange Commission (SEC).
This strategic move enables Coinbase to provide bitcoin and ether futures trading directly to eligible U.S. clientele. Previously, only institutional clients had access to such trading products.
Following the approval from the National Futures Association (NFA), a self-regulatory entity designated by the Commodity Futures Trading Commission (CFTC), Coinbase’s stock surged by 3% to reach $81.55.
Coinbase expressed its view on the achievement, stating, “This milestone is of utmost importance, solidifying our commitment to operate as a regulated and compliant business.”
The company’s clash with the SEC has been public, with the regulatory body filing a lawsuit in June, alleging that Coinbase was operating unlawfully due to its failure to register as an exchange.
CEO Brian Armstrong has openly criticized the SEC and raised concerns about a potentially adverse regulatory atmosphere. He has also warned that the enforcement-centric approach of SEC Chair Gary Gensler could impede innovation within the industry. Armstrong suggested that this unfavorable environment might prompt more U.S.-based crypto companies to consider moving operations overseas.
The NFA’s approval arrives nearly two years after Coinbase initially submitted its application. This regulatory green light opens doors for Coinbase to tap into a largely untapped market.
The global derivatives market constitutes almost 80% of the entire cryptocurrency market, often influencing volatility through leveraged bets on futures and other derivatives.
As of July, the trading volume for crypto derivatives globally had reached approximately $1.85 trillion, as reported by research firm CCData.
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