Per an official post, crypto exchange Coinbase received permission from the US National Futures Association (NFA) to offer Bitcoin and Ethereum futures in the country. An organization designated by the Commodities and Futures Trading, the NFA granted permission to the crypto exchange, making it the first within the country.
CFTC Gets Ahead Of The SEC? Coinbase Celebrates
According to the official post, the new authorization will allow the crypto market to access “broader participation.” US citizens were previously cut-off from crypto futures trading.
In that sense, the crypto company called the decision a “watershed moment” for the nascent industry. Coinbase said:
(…) 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.
Coinbase’s Chief Legal Officer Paul Grewal stated the following in the announcement:
This moment was years in the making. It’s is a testament to Coinbase’s unwavering commitment to safeguard our customers. Put simply, at every juncture, Coinbase has invested the time and diligence required to align with regulators actually interested in When regulators pursue regulatory clarity for the cryptoeconomy, good things happen. Innovation in the US flourishes. Markets remain orderly. Most importantly, consumers and investors are protected.
In the meantime, the crypto exchange is entangled in a legal dispute with the US Securities and Exchange Commission (SEC). The regulator has displayed a hostile attitude towards the nascent sector by filing lawsuits against its top exchanges.
Binance, Kraken, Coinbase, and every major company in the sector offering crypto-based financial products have had to deal with the SEC. The approach has been dubbed “regulation by enforcement” and condemned by several actors in the industry.
At some point, Coinbase and others considered leaving the US but ultimately decided against it and migrating to more favorable jurisdictions. However, today’s decision could reverse the perception that the country will ban cryptocurrencies and blockchain technology.
As of this writing, COIN trades at $79 after experiencing downside pressure on the daily chart.
Chart from Tradingview
Source: https://bitcoinist.com/coinbase-permission-offer-bitcoin-ethereum-futures/