Coinbase Receives NFA Approval for US Crypto Futures

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  • Coinbase has obtained permission from the National Futures Association (NFA) to offer crypto futures to eligible US customers
  • The approval positions Coinbase to introduce Bitcoin and Ether futures contracts through its CFTC-regulated derivatives exchange.
  • Despite legal challenges, Coinbase has expanded operations into Canada alongside plans for Bitcoin and Ether futures trading

Coinbase has been granted permission from the National Futures Association (NFA) to offer crypto futures to eligible customers in the United States. Coinbase made the announcement yesterday, confirming that the company has been granted official authorization to operate as a Futures Commission Merchant (FCM) platform. With this NFA approval, Coinbase is now poised to introduce futures contracts for Bitcoin and Ether via its derivatives exchange, which is regulated by the Commodity Futures Trading Commission (CFTC).

Coinbase Expansion Continues

Coinbase has been pushing ahead with its expansion plans despite negative attention from US authorities Coinbase, exemplified by yesterday’s news that it has extended its operations into Canada.

The initiation of Bitcoin and Ether futures trading for institutional investors was initially unveiled by the company in early June, having previously disclosed its intentions to launch a derivatives exchange in Bermuda, another strategic move in its global expansion endeavors.

Coinbase’s official announcement acknowledged the importance of the news:

This represents a pivotal achievement that underscores our unwavering dedication to conducting business within the bounds of regulations and compliance, establishing us as the preeminent and most reliable crypto-native platform for our valued customers.

Traders Will Have to Wait

The company further highlighted that margin trading empowers customers with leverage and entry into the cryptocurrency market with less upfront capital compared to conventional spot trading.

Nonetheless, the availability of the new futures trading service within the US will not be immediate, as outlined on Coinbase’s cryptocurrency futures webpage, where it invited potential users to sign up, saying that futures trading is “coming soon.”

Amidst these positive strides, Coinbase continues to navigate an ongoing legal battle against the U.S. Securities and Exchange Commission (SEC). The regulatory body filed a lawsuit against Coinbase in early June, alleging that the exchange had contravened local securities laws by vending unregistered securities.