Coinbase, the largest crypto exchange in the US in terms of trading volumes, has announced that it has gained regulatory approval to introduce federally regulated cryptocurrency futures trading for eligible clients within the United States. This development led to a significant surge in the company's stock shares just ahead of Wednesday's opening bell. Earlier in June, the US Securities and Exchange Commission (SEC) took legal action against both Binance and Coinbase. The regulatory body claimed that these entities were conducting activities in violation of the law by operating as securities exchanges without proper registration under the SEC.
Coinbase revealed on Wednesday that it has successfully secured regulatory clearance from the National Futures Association (NFA) to operate as a futures commission merchant. The application for this designation was formally submitted to the NFA back in 2021. With this newly acquired approval, Coinbase will facilitate access for eligible US customers to regulated derivatives products through its platform, known as Coinbase Financial Markets. The oversight of these activities will be carried out by both the Commodity Futures Trading Commission (CFTC) and the NFA.
In a Twitter announcement, Coinbase specified that it is now able to offer cryptocurrency futures contracts, specifically pertaining to Bitcoin and Ether. These futures contracts are financial agreements that enable the buying or selling of an asset at a predetermined price on a future date, as specified within the contract.
Coinbase considers this milestone to be of immense significance, viewing it as a pivotal moment in bringing regulated cryptocurrency products to its US clientele. The company underscored its commitment to maintaining a regulated and compliant operational framework, thereby reinforcing its role as a dependable and secure platform catering to crypto-native needs.
Currently, the Coinbase website features a notice that indicates the forthcoming availability of US-regulated futures trading. Interested parties are encouraged to join the waitlist for these offerings. Notably, Coinbase had previously unveiled plans to launch bitcoin and ether futures trading specifically catering to institutional investors via its Coinbase Derivatives Exchange, with the anticipated rollout scheduled for June.
Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Cryptocurrency is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Cryptocurrency market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.