Coinbase Wins Approval for Crypto Futures Trading in US

Updated: 16 August 2023

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Coinbase won approval to offer crypto futures trading to customers in the US.

It becomes the first crypto platform that’s able to offer investments that will include Bitcoin and Ethereum futures contracts via a so-called Futures Commission Merchant platform.

https://twitter.com/coinbase/status/1691751814004175204?ref_src=twsrc%5Etfw

Coinbase said on its blog that the regulatory approval from the NFA, which took almost two years, is a vital step forward.

Greg Tusar, Coinbase’s spokesperson stated:

By gaining this regulatory foothold, the crypto exchange positions itself as a pioneer in the digital financial realm, poised to offer a unified platform where traditional spot crypto trading and regulated, leveraged crypto futures coexist harmoniously.

The company recognizes that the ability to trade crypto derivatives provides users with leverage and flexibility to engage with the market while managing risk and exposure more effectively.

Coinbase highlighted that its acquisition of FairX, which it turned into the Coinbase Derivatives Exchange, underscores its commitment to this path. This exchange has already introduced Nano Bitcoin and Ethereum futures contracts designed for everyday investors as well as larger institutions.

Today, Coinbase filed an application with the NFA to register as an FCM → Futures Commission Merchant.

This is the next step to broaden our offerings and offer futures and derivatives trading on our platforms.

👉 Goal: Further grow the cryptoeconomy.

— Coinbase 🛡️ (@coinbase) September 15, 2021

Coinbase’s regulatory victory may help bridge the gap between traditional finance and the burgeoning realm of cryptocurrencies.

In the words of Coinbase:

Access to a CFTC-regulated crypto derivatives market is essential to unlocking significant growth and enabling broader participation in the cryptoeconomy.

Coinbase Faces Legal Challenge

As Coinbase emerges as the first crypto-native platform in the US to offer regulated cryptocurrency futures trading alongside traditional spot trading, the announcement comes at a time when the company faces legal challenges from the US Securities and Exchange Commission (SEC).