Top global crypto exchange Coinbase has secured regulatory permission to offer crypto futures trading services in the U.S. The approval coming from the National Futures Association (NFA), allows Coinbase Financial Markets, Inc. to operate a Futures Commission Merchant (FCM) and offer eligible US customers access to crypto futures.
The new feature which is to become available soon, will give customers direct access to futures through Coinbase Financial Markets. Interested users can sign up on a waiting list for early access, according to the website.
Coinbase filed an application with the NFA to register as an FCM in September 2021. The company says it has worked closely with the regulators since then, to ensure that it complied with all regulatory requirements and to ensure that the FCM’s business model meets the CFTC’s customer protection requirements.
The company further stated that it believes the approval is a “watershed moment” that allows them to bring regulated services to the U.S.
“We believe this is a watershed moment to be able to bring regulated crypto products to US customers. Where regulations are clear and sensible, we will work with regulators to receive the authorizations needed to offer products that align with our purpose of using crypto to update the financial system to advance economic freedom and opportunity. We support this purpose by building the most trusted and secure products and services,” it stated.
A big step for Coinbase
Coinbase has been under a lot of regulatory pressure in the U.S. lately, being in court for allegedly violating securities laws by trading in “unregistered securities”. Even though the exchange applied for dismissal of the case against it, this hasn’t yielded any fruit.
The approval to offer futures trading is therefore a big step which Coinbase says enables it to bring regulated futures contracts to users.
“Obtaining FCM approval was our next step in bringing these transparent and secure markets to our customers so they can access regulated futures contracts alongside our liquid spot market. In the coming months, we’ll provide additional information on how our verified US customers can access our futures offering.”
Until now, derivatives futures trading was banned in the U.S., even though it makes up “~75% of crypto trading volume worldwide and is a critical trader access point.” As a result, Coinbase and Gemini, two of the U.S.’ biggest crypto exchanges launched derivatives trading platforms outside the country earlier this year.
This approval could however mark the beginning of positive change that will allow U.S. customers “leverage and access to the crypto market with less upfront investment than traditional spot trading.”
Bringing more people to crypto
Because of the regulatory environment in the U.S., many people haven’t had access to the cryptocurrency industry as they should. This is about to change with futures trading being made available.
“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,” Coinbase further stated.
With such positive developments, the crypto space in the U.S. may not be entirely hopeless in terms of having a more friendly environment in the future after all.
