Cryptocurrency exchange Coinbase has achieved a significant milestone by obtaining National Futures Association (NFA) approval.
On August 16, Coinbase proudly announced this newly acquired status. This approval will allow it to operate as a Futures Commission Merchant (FCM) platform. Additionally, Coinbase can now provide cryptocurrency futures trading to eligible institutional investors in the United States.
This accomplishment empowers Coinbase to introduce Bitcoin and Ether futures contracts through its Commodity Futures Trading Commission (CFTC)-regulated derivatives exchange.
Enhancing Market Accessibility and Upcoming Futures Trading Service
Coinbase emphasized the critical nature of this achievement in reinforcing its commitment to regulatory compliance, security, and trustworthiness. The company expressed its dedication to being the premier and most secure crypto-native platform for its customers.
While this groundbreaking development has been achieved, the new futures trading service will not be immediately accessible to traders within the United States. However, Coinbase is taking steps to ensure that the service is soon made available. Prospective traders are encouraged to join the waitlist to secure early access to this exciting opportunity.
Coinbase’s announcement also provided a valuable insight into the global landscape of crypto derivatives trading. Notably, it stated that a staggering 75% of worldwide crypto trading volume occurs within the crypto derivatives market. This trading approach empowers users by granting leverage and access to the crypto market, requiring less initial investment compared to traditional spot trading methods.
Coinbase’s Forward Momentum, Global Strategy and Legal Challenges
This milestone achievement further aligns seamlessly with Coinbase’s broader strategic objectives. As previously reported, the company revealed its intention to launch Bitcoin (BTC) and Ether (ETH) futures trading exclusively for institutional investors in early June. Moreover, Coinbase’s global expansion strategy is further evidenced by its plans to establish a derivatives exchange in Bermuda.
It’s important to acknowledge that this achievement arrives amidst Coinbase’s ongoing legal engagement with the U.S. Securities and Exchange Commission (SEC). In the face of a lawsuit filed by the SEC in early June, Coinbase remains resolute in addressing allegations of selling unregistered securities and navigating the intricate landscape of local securities laws.
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