Coinbase to Offer Cryptocurrency Futures Trading
Coinbase (COIN) has announced that it will now provide cryptocurrency futures trading on its U.S.-based exchange. This move comes after gaining approval for regulated crypto futures trading from the National Futures Association.
Key Takeaways
- Coinbase customers will soon have access to crypto futures trading.
- The exchange has received approval for regulated crypto futures trading from the National Futures Association.
- This regulatory approval coincides with Coinbase’s legal battle with the Securities and Exchange Commission (SEC).
Crypto Futures as a Milestone for Coinbase
Customers of Coinbase will soon be able to engage in futures trading through the Coinbase Financial Markets offering. Following the approval granted by the National Futures Association, Coinbase becomes the first cryptocurrency trading platform solely dedicated to offering such products.
Bitcoin futures are already accessible through the Chicago Mercantile Exchange (CME), and CBOE Digital, a branch of the Chicago Board Options Exchange (CBOE), also received approval to introduce leveraged bitcoin and ether futures in June.
Coinbase highlighted that approximately 75% of global crypto trading volume comprises futures trading, underscoring the significance of the NFA approval as a pivotal moment. The company described the approval as a “watershed moment.”
While Coinbase’s institutional clients have had access to crypto futures trading on the platform, the recent regulatory approval will extend this offering to all eligible U.S. customers of Coinbase.
It is worth noting that Coinbase’s authorization for futures trading comes amidst its legal dispute with the SEC. Several crypto firms, including Binance and Coinbase, have faced scrutiny from the SEC this year for the sale of unregistered securities. Coinbase’s CEO, Brian Armstrong, has expressed concerns that the regulatory environment surrounding crypto in the U.S. could drive the industry offshore.
