Coinbase, a well-known cryptocurrency exchange, recently got approval from the National Futures Association (NFA) to expand its services. Now, it can offer investment opportunities in cryptocurrency futures to eligible clients in the United States.
On August 16, Coinbase happily announced that it received official permission to act as a platform for Futures Commission Merchant (FCM). This means Coinbase can now introduce futures contracts for two major cryptocurrencies: Bitcoin (BTC) and Ether (ETH).
These products will be offered on the authorised derivatives exchange CFTC. The CFTC and NFA’s oversight will ensure a seamless operation as these additions operate alongside their regular market.fut
Coinbase’s goal is to give a safe way for people in the US to enter the crypto world. By getting approval for regulated crypto derivatives, they’re helping keep the US a leader in digital innovation.
In their blog, Coinbase mentioned that following the rules and being clear are crucial to making customers and institutions feel confident. They said having a CFTC-regulated crypto derivatives market is important for more growth and wider involvement in the crypto economy.
“Having access to a CFTC-regulated crypto derivatives market is vital for growth and for more people to join the crypto economy.”
Coinbase applied to the NFA in September 2021 to become a Futures Commission Merchant (FCM). Since then, they’ve worked with regulators to follow the rules and match their FCM’s business plan with what the CFTC says to protect customers.
Becoming a publicly-traded US company was chosen because the US has strong rules to keep consumers safe and still welcomes the possibilities in the crypto industry.
“This is a big step that shows our commitment to following the rules and being a trusted and secure platform for our customers,” Coinbase said in a statement.
According to the cryptocurrency futures page at Coinbase, US futures trading won’t start immediately. According to the website, US-regulated futures trading will soon be available. Register to receive early access.
In the next months, Coinbase plans to give more details about how verified US customers can use their future services.
However, Coinbase is also dealing with a legal issue with the US Securities and Exchange Commission (SEC). The SEC sued Coinbase in early June, saying that the exchange broke local laws about securities by selling things that weren’t registered.