Coinbase Receives NFA Approval for Cryptocurrency Futures Trading in US

Aug 17, 2023

On August 16, Coinbase Global (COIN.O) announced that it had received approval to offer cryptocurrency futures to retail customers in the United States. This regulatory milestone comes amid a legal battle with the Securities and Exchange Commission (SEC). The approval from the National Futures Association (NFA), a self-regulatory organization designated by the Commodity Futures Trading Commission (CFTC), allows Coinbase to provide bitcoin and ether futures directly to eligible U.S. customers. Previously, only institutional clients could access such products.

Following the approval, Coinbase's shares rose by 3% to $81.55. The company expressed its dedication to operating a regulated and compliant business and has criticized the SEC for accusing it of illegal operation due to failure to register as an exchange.

The NFA's approval could open doors for Coinbase to enter an untapped market, as the global derivatives market accounts for nearly 80% of the entire crypto market. This move may also contribute to the company's expansion and impact the broader crypto market's volatility, which often stems from leveraged bets on futures and derivatives.

According to CCData, global crypto derivatives trading volumes reached around $1.85 trillion in July.

Source: reuters.com