Key points:
- Coinbase has obtained approval from the National Futures Association to offer investments in crypto futures in the US.
- The approval allows Coinbase to operate as a Futures Commission Merchant (FCM) platform.
- Bitcoin and Ether futures contracts will be introduced through Coinbase's Commodity Futures Trading Commission (CFTC)-regulated derivatives exchange.
- Coinbase plans to launch regulated futures trading in the US soon, with a waitlist available for early access.
- The global crypto derivatives market makes up 75% of crypto trading volume worldwide, according to Coinbase.
- Coinbase is currently facing a legal battle with the US Securities and Exchange Commission.
Leading cryptocurrency exchange Coinbase has been granted approval by the National Futures Association to offer cryptocurrency futures investments to eligible customers in the United States. This development allows Coinbase to establish its status as a Futures Commission Merchant (FCM) platform, giving it the ability to introduce Bitcoin (BTC) and Ether (ETH) futures contracts through its regulated derivatives exchange, overseen by the Commodity Futures Trading Commission (CFTC).
In an official statement on August 16, Coinbase stated that this approval is a significant milestone that underscores their commitment to running a compliant and regulated business. It also emphasizes their aim to be the most secure and trusted platform for customers engaging in cryptocurrency trading.
Although future trading services are not yet available in the US, Coinbase has created a waitlist for US customers who wish to gain early access. The company encourages interested individuals to sign up for the waitlist on their website.
The announcement from Coinbase also highlighted the importance of the global cryptocurrency derivatives market, which accounts for 75% of the total crypto trading volume worldwide. By offering futures contracts, Coinbase aims to provide customers with increased leverage and access to the crypto market, requiring less upfront investment compared to traditional spot trading.
It should be noted that Coinbase is currently embroiled in a legal battle with the US Securities and Exchange Commission (SEC). The regulator filed a lawsuit against Coinbase in June, alleging that the exchange violated local securities laws by selling unregistered securities.
