Coinbase Receives Regulatory Approval to Offer BTC and ETH Futures to US Customers

Coinbase has received a regulatory license to commence offering BTC and ETH derivatives contracts to eligible users of its customer base.

On Wednesday, Coinbase took to X to announce receiving approval from a self-regulatory organization under the Commodity Futures Trading Commission (CFTC). In particular, the exchange received clearance from the National Futures Association (NFA).

The National Futures Association, a CFTC designated SRO, has approved Coinbase Financial Markets. as a registered Futures Commission Merchant .

Coinbase can now offer futures contracts in BTC and ETH to eligible customers in the US.👇

— Coinbase 🛡️ (@coinbase) August 16, 2023

Coinbase Now Offers BTC and ETH Futures 

According to the update, the clearance allows Coinbase to begin offering Bitcoin (BTC) and Ethereum (ETH) futures contracts, particularly to its users in the United States. 

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Coinbase highlighted its belief that clear and transparent regulations are crucial to growing confidence in retail and institutional clients. The exchange stressed that securing this approval enables more US-based customers to participate in the booming crypto economy. 

Notably, Coinbase’s journey toward this license began two years ago. The exchange filed papers with the NFA to register as a Futures Commission Merchant (FCM). Throughout the period, Coinbase’s team collaborated with the US regulator to ensure avenues for customer protection were met.

After two years in pursuit, Coinbase has secured the needed clearance to offer crypto derivative products to qualified US clients. The exchange will carry out the regulated offering via Coinbase Financial Markets. Additionally, the service will work with its spot market under the supervision of the NFA and the CFTC.

Meanwhile, Coinbase highlighted that derivative markets account for around 75% of all crypto trading.

The firm argued that futures contracts represented a crucial access point for most crypto-seeking people. According to the exchange, this situation birthed the need for US customers to partake in the growing crypto economy. 

The firm stated:

“Approval for US customers to access regulated crypto derivatives will allow more people to access the cryptoeconomy in the United States in a safe way that helps keep the US at the center of digital innovation.”

Notably, Coinbase previously acquired a regulated derivative platform called FairX. The platform now operates as Coinbase Derivatives Exchange. Coinbase stated the trading outlet is accessible to third-party vendors, market makers, and Futures Commission Merchants.