Coinbase Approved to Launch Crypto Futures Trading in US


Coinbase Global (COIN.O) announced on Wednesday that it had been approved by regulators to offer cryptocurrency derivatives to U.S. customers. Previously, only institutional clients had access to these products. Coinbase had to obtain approval from the National Futures Association (NFA) for this to become a reality.

“This is a critical milestone that reaffirms our commitment to operate a regulated and compliant business,” Coinbase said. The company had previously criticized the Securities and Exchange Commission (SEC) for filing a lawsuit against them, claiming that Coinbase was not registered as a stock exchange.

According to Gary Gensler, Chair of the SEC, more crypto companies could relocate offshore due to an unfriendly regulatory environment. This could hinder innovation in the industry.

Coinbase’s approval from the NFA is a major win for the company, and allows them to expand their business into a largely untapped market. The global derivatives market accounts for nearly 80% of the crypto market, and leveraged bets placed on futures and derivatives are often to blame for the volatility of the market.

In July, CCData reported that the global trading volume of crypto derivatives totaled $1.85 trillion. With the approval from the NFA, Coinbase could open up this market to U.S. customers who qualify.

Reporting by Niket Nishant Bengaluru and editing by Saumyadeb Chakrabarty, Our Standards: The Thomson Reuters Trust Principles. Acquire Licensing Rights.

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