Key Points:
- Historic Authorization: Coinbase becomes the inaugural platform to offer Bitcoin and Ethereum futures trading in the US.
- Market Access Expansion: US citizens can now engage in regulated cryptocurrency futures trading, fostering wider market participation.
- Regulatory Collaboration: Coinbase’s long-standing commitment to regulatory compliance and customer protection paved the way for this landmark approval.
Coinbase, the cryptocurrency exchange, has officially received authorization from the US National Futures Association (NFA) to introduce Bitcoin and Ethereum futures trading within the country. Designated by the Commodities and Futures Trading, the NFA’s approval positions Coinbase as the pioneering entity to offer such futures trading in the US.
Possibly Surpassing the SEC, Coinbase Commemorates Milestone
As outlined in the official announcement, this newly granted permission is anticipated to broaden participation within the cryptocurrency market. Previously, US residents were restricted from engaging in cryptocurrency futures trading.
In light of this development, Coinbase hailed the decision as a “pivotal moment” for the emerging cryptocurrency industry. The company expressed:
“We are excited to share that we have secured approval, enabling eligible US clients to access regulated derivative products through Coinbase Financial Markets, seamlessly alongside our existing spot market offerings. This will be subject to the oversight of both the CFTC and the NFA.”
Paul Grewal, Coinbase’s Chief Legal Officer, conveyed the following sentiments in the statement:
“This achievement has been years in the making and stands as a testament to Coinbase’s steadfast dedication to safeguarding our customers. Simply put, at every turn, Coinbase has invested the necessary time and effort to align with regulators who genuinely seek to establish regulatory clarity for the cryptocurrency economy. This positive approach yields favorable outcomes – innovation thrives within the US, markets remain orderly, and crucially, consumers and investors are well-protected.”
Meanwhile, Coinbase finds itself embroiled in a legal disagreement with the US Securities and Exchange Commission (SEC). The regulatory body has demonstrated a confrontational stance toward the emerging sector, initiating legal actions against leading exchanges.
Prominent entities in the sector, including Binance, Kraken, and Coinbase, as well as other major companies offering cryptocurrency-based financial products, have had to navigate interactions with the SEC. This approach has been criticized as “regulation through enforcement” and has garnered disapproval from various stakeholders within the industry.
At one point, both Coinbase and other entities contemplated relocating outside of the US in search of more favorable jurisdictions. Nevertheless, today’s authorization has the potential to shift perceptions, possibly reversing the notion that the US might impose bans on cryptocurrencies and blockchain technology.
