Coinbase Introduces Regulated Crypto Futures Trading

Coinbase Financial Markets has made a historic leap in the world of cryptocurrency, securing regulatory approval to offer crypto futures trading in the U.S.

Setting a Precedent: Regulated Crypto Futures Trading

Coinbase Financial Markets, a CFTC-registered futures commission merchant, has secured approval from the National Futures Association to function as a Futures Commission Merchant (FCM). This is more than just a legal nod; it is a defining moment that underscores Coinbase’s commitment to a regulated and transparent crypto economy.

Coinbase filed an application in September 2021 and has since worked closely with regulators to comply with all requirements, including customer protection. 

What is the motto behind this? 

As the first exchange to offer both traditional spot crypto trading and regulated leveraged crypto futures, Coinbase is shaping a new era of investment possibilities. The goal? More accessibility to the crypto economy and boosting the U.S.’s position in the global digital innovation landscape.

Global Expansion: Hello, Canada!

Last week, Coinbase expanded its presence in Canada through a collaboration with Peoples Trust Company. This new partnership is designed to provide more seamless access to Interac e-Transfers for Canadian users. Coinbase sees Canada as a key market, being the second-most crypto-aware country in its international markets.

Legal Frontlines: Coinbase vs SEC

Coinbase is currently embroiled in a legal battle with the U.S. SEC. The exchange filed a motion to dismiss the lawsuit, arguing that crypto doesn’t fall under SEC’s purview. Senator Cynthia Lummis has submitted an amicus brief in favour of dismissal.

Stock Market Reaction: COIN on the Rise

Coinbase’s stock price, trading under the symbol COIN, shot up 6.39% to $84.24 in pre-market hours, a bullish move following a recent downtrend after the second quarter results.

From the acquisition of FairX (now known as Coinbase Derivatives Exchange) to the introduction of transparent and secure futures contracts for both retail and institutional investors, Coinbase’s path is clearly chartered towards innovation and compliance.

“We believe this is a watershed moment to be able to bring regulated crypto products to US customers.” – Coinbase