Coinbase Global announced securing regulatory approval to enable retail customers in the United States to trade crypto futures.
According to the announcement, the National Futures Association, which happens to be a CFTC-designated SRO, has greenlighted Coinbase Financial Markets as a registered Futures Commission Merchant (FCM). The approval comes almost two years after the initial application was submitted.
Coinbase Obtains Futures Commission Merchant Approval
The regulatory clearance makes Coinbase the first in the industry to directly offer traditional spot crypto trading alongside regulated and leveraged crypto futures on an integrated trading solution for its verified customers.
“Today, we are pleased to announce that approval has been secured, which will allow eligible US customers to access regulated derivatives products through Coinbase Financial Markets and alongside our spot market for a seamless experience subject to the oversight of the CFTC and the NFA.”
Designated by the Commodity Futures Trading Commission (CFTC), the NFA functions as a self-regulatory entity. The San Francisco-based crypto exchange filed to become a member of the National Futures Association and register as an FCM back in September 2021.
While embroiled in a legal dispute with the SEC, Coinbase has characterized the approval as a “significant milestone.” The company said it views this development as a notable step towards establishing federal regulatory supervision within the crypto markets, a move aimed at safeguarding consumers and maintaining the United States as a hub for digital innovation.
Expansion and More
With mounting regulatory uncertainties back home, Coinbase is intensifying its expansion strategy across the North American market. Earlier this week, the firm announced officially launching operations in Canada, as part of which, the crypto exchange introduced Coinbase One to local users – a 30-day trial offering zero trading fees and priority support.
Coinbase’s recent expansions in the region also include the launch of a platform in Bermuda that serves non-US institutional clients.
The company public launched its Base mainnet recently, which witnessed significant user activity in a span of less than a week.
Meanwhile, its CEO, Brian Armstrong, had previously revealed exploring the best possible way to integrate the Bitcoin Lightning Network (LN) scaling solution.