The US National Futures Association (NFA) officially grants Coinbase, a leading cryptocurrency exchange, permission to introduce futures trading for Bitcoin and Ethereum within the United States.
Coinbase Receives Green Light from NFA to Offer Cryptocurrency Futures Trading in the US
Authorized by the Commodities and Futures Trading, this endorsement from the NFA signifies a historic achievement. Moreover, it positions Coinbase as the pioneer in offering these types of financial derivatives. The offerings specifically target American customers. Altogether, this marks a significant step in the cryptocurrency market
Milestone Achievement: Coinbase Leads the Way in Broadening Participation in Crypto Market
This significant move by Coinbase represents a substantial step towards increasing participation in the cryptocurrency market.
This newly acquired authorization opens pathways for regulated derivative products, thereby removing the prior restrictions that prevented US residents from engaging in crypto futures trading. The authorization effectively enables regulated derivative products, signifying the removal of previous barriers for US residents in crypto futures trading.
Coinbase describes this as a groundbreaking moment and celebrates it as a remarkable accomplishment for the emerging cryptocurrency industry.
The exchange is enthusiastic about the approval and highlights a seamless experience through Coinbase Financial Markets. This, in turn, effectively complements the existing spot market. Furthermore, the excitement surrounding these developments centers on the enhanced offerings for users.
The Commodity Futures Trading Commission (CFTC) and the NFA will now closely oversee both of these options.
Paul Grewal, Coinbase’s Chief Legal Officer, affirmed that this achievement is the result of years of dedication to regulatory compliance.
He emphasized the exchange’s strong commitment to protecting customers. Additionally, he noted that Coinbase’s alignment with regulators dedicated to ensuring clear regulations has been pivotal in reaching this milestone.
Grewal underscored that a regulatory environment that fosters innovation, maintains market integrity, and, most importantly, safeguards the interests of consumers and investors is crucial.
Coinbase’s attainment of NFA approval occurs amid an ongoing legal dispute with the US Securities and Exchange Commission (SEC).
The SEC’s confrontational approach towards the emerging cryptocurrency sector, demonstrated by lawsuits against major exchanges like Binance, Kraken, and Coinbase, has been criticized as a form of “regulation through enforcement.”
