Coinbase has received a green light to offer regulated futures trading services in the United States, despite facing investigation by the Securities and Exchange Commission (SEC).
The crypto exchange announced that it had got approval from the Nationals Futures Association (NFA) to allow customers to trade crypto futures. The Commodity Futures Trading Commission (CFTC) established the NFA as an independent self-regulatory organization for the futures and derivatives markets.
Coinbase to Offer Regulated Futures Trading, but Only For “Eligible” Customers
The exchange has been attempting to get the regulatory green light from the NFA since September 2021. As a part of the efforts, Coinbase acquired the derivatives exchange FairX in January 2022 and rebranded it to Coinbase Derivatives Exchange.
Despite the announcement, there is some lack of clarity and confusion among the community members. Coinbase says that it would allow “eligible” US customers to access its futures trading platform. However, the company has not given clarification regarding the eligibility criteria.
Nonetheless, most community members viewed this development as a positive approach to the broader regulation of crypto. An X (Twitter) user wrote:
“Seems like a pretty big deal. Opens up crypto derivatives for US retail customers.
The global crypto derivatives market represents ~75% of crypto trading volume worldwide.”
As of writing, the Coinbase stock is trading at $82.10, up by around 4% in the pre-market. There is strong resistance around $84.95.
However, the company still faces regulatory challenges in the US.
Currently, Coinbase is attempting to dismiss the lawsuit from the US Securities and Exchange Commission (SEC). While many lawmakers are against crypto innovation, Wyoming Senator Cynthia Lummis supported Coinbase by submitting an amicus curiae brief to the court.
Click here to read more about alternatives to Coinbase for trading crypto.
The SEC sued Coinbase on June 6, accusing it of operating an unregistered securities exchange.
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