|

Crypto News

Coinbase Gets Green Light to Launch Crypto Futures for US Users

Author

Jay Solano

Tags

Reading time

2 mins
Last update

Author

Jay Solano

Tags

Reading time

2 mins
Last update

Author

Jay Solano

Tags

Reading time

2 mins
Last update

coinbase

Join our growing community


Coinbase, a prominent cryptocurrency exchange listed on Nasdaq, has been granted permission to introduce crypto futures to its US clientele. This makes Coinbase the pioneer amongst major crypto platforms to offer both regular cryptocurrency trading and fully-regulated crypto futures.

Recently, Coinbase broke the news that it has crossed a significant milestone. The achievement? They have received the nod from the National Futures Association (NFA), an authoritative entity under the CFTC, to set a Futures Commission Merchant (FCM) in motion. With this, they can provide eligible US users with crypto futures via their platform.

In September 2021, Coinbase initiated the process by filing the necessary paperwork with the NFA to establish an FCM. This week, they proudly announced that they’ve been given the go-ahead.

In its statement, Coinbase highlighted its mission of operating a fully compliant and well-regulated platform. They aimed to be a trustworthy choice for customers by saying, “Our goal is to blend traditional crypto trading with regulated crypto futures, giving a comprehensive trading solution for our dedicated users.”

Furthermore, Coinbase is stretching its wings globally. Just this week, they started their operations officially in Canada.

However, it could be smoother sailing for Coinbase. They’re navigating a legal maze with the U.S. Securities and Exchange Commission (SEC). The SEC has levied allegations against Coinbase, suggesting the platform functions as an unregistered securities exchange, broker, and clearing agent. Coinbase strongly disagrees with the holding firm that the digital assets they list don’t qualify as securities. However, SEC’s head, Gary Gensler, thinks otherwise, considering almost all crypto tokens (except bitcoin) as securities. Coinbase has legally appealed to dismiss these charges, suggesting that the SEC might be overstepping its bounds.