Despite SEC's lawsuit, Coinbase secures a major win in the crypto futures realm.
Coinbase, a renowned cryptocurrency exchange, has just secured the green light from the National Futures Association (NFA) to roll out crypto futures investments for eligible American users.
On August 16th, Coinbase proudly declared its official nod to spearhead a Futures Commission Merchant (FCM) platform.
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The approval paves the way for the introduction of Bitcoin (BTC) and Ether (ETH) futures via its derivatives exchange, supervised by the Commodity Futures Trading Commission (CFTC).
In their official statement, the company conveyed:
This is a critical milestone that reaffirms our commitment to operate a regulated and compliant business and be the most trusted and secure crypto-native platform for our customers.
However, a notice from Coinbase regarding its crypto futures alerts that the service hasn't yet been launched in the country. The crypto exchange teased its eager followers:
US regulated futures trading is coming soon. Sign up to join the waitlist and get early access.
In terms of crypto derivatives, Coinbase points out their significance, estimating that such trades represent a staggering 75% of global crypto transactions. The firm elaborated on the appeal of futures trading, saying that margin trades provide "leverage and access to the crypto market with less upfront investment than traditional spot trading."
Historically speaking, Coinbase first hinted at the launch of BTC and ETH futures for institutional players in June. Additionally, they eyed an overseas venture, aiming to roll out a derivatives platform in Bermuda, reflecting their global ambitions.
The backdrop to these advances is, however, not without its challenges. Coinbase has been grappling with a legal confrontation with the United States Securities and Exchange Commission, wherein the regulatory body alleged that Coinbase had sidestepped local securities regulations.
