Coinbase, the well-known cryptocurrency exchange, has just received the green light from regulators to introduce regulated cryptocurrency futures trading for eligible customers within the United States. This announcement has caused a notable surge in Coinbase’s stock value.
The regulatory journey for Coinbase has been bumpy. Notably, in June, both the U.S. Securities and Exchange Commission (SEC) and the National Futures Association (NFA) filed lawsuits against the company, asserting that it was operating as a securities exchange without proper registration.
Now, however, Coinbase has successfully secured regulatory approval from the NFA to operate as a futures commission merchant (FCM). This approval means that qualifying U.S. customers will soon have access to regulated crypto futures through Coinbase Financial Markets.
This development positions the company as a pioneer in the industry, as it will be the first crypto-native platform to provide traditional spot crypto trading combined with regulated and leveraged crypto futures.
Coinbase Will Empower U.S. Customers with Regulated Derivatives
This integrated solution aims to cater to a broader audience of traders and investors, offering them more options to engage with the crypto market while adhering to regulatory standards.
Moreover, the approval to offer regulated crypto derivatives products addresses a significant market demand. Currently, around 75% of the global crypto trading volume involves derivatives. These products allow traders to speculate on the price movements of cryptocurrencies without owning the underlying assets directly. This ability to use leverage makes it easier for investors to participate with less initial capital.
Access to regulated crypto futures opens the door to increased growth and broader participation in the crypto economy. Meanwhile, the largest crypto exchange in America maintains that this development aligns with its goal of making crypto trading more accessible and secure, saying:
“Approval for US customers to access regulated crypto derivatives will allow more people to access the cryptoeconomy in the United States in a safe way that helps keep the US at the center of digital innovation.”
In the upcoming months, the Coinbase exchange will roll out more details about how U.S. customers can start utilizing the newly introduced futures products. These derivatives will enable customers to employ leverage, manage risk, and express both long and short positions in the crypto market.
Coinbase’s successful regulatory approval to introduce regulated crypto futures trading represents a significant milestone for both the company and the broader cryptocurrency ecosystem.