Coinbase Obtains Futures Commission Merchant Approval
In a landmark regulatory clearance, Coinbase becomes the pioneering entity in the crypto domain to simultaneously offer spot crypto trading and regulated crypto futures. This integrated solution will be available to its verified US customer base.
Coinbase’s statement read: “Today, 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.”
Regulatory Journey and Significance
Operated under the designation of the Commodity Futures Trading Commission (CFTC), the NFA acts autonomously in its regulatory decisions. The journey began when Coinbase, the renowned San Francisco-based crypto trading platform, decided to affiliate itself with the National Futures Association and aimed to get recognized as an FCM in September 2021.
While facing legal complications with the SEC, Coinbase identifies this approval as a “noteworthy milestone.” Their vision is clear: they anticipate this step as a cornerstone for nurturing federal regulatory guidance within the crypto sector. Their core intention is to protect customers and reinforce the US as a centerpiece for digital evolution.
Expansion and More
The crypto market’s landscape is ever-evolving, and amidst this, Coinbase is amplifying its presence across North America. A recent announcement shed light on its Canadian operations’ inauguration. Here, Canadian patrons were introduced to the novel “Coinbase One” – an enticing 30-day scheme with zero trading charges and a priority in customer support.
Additionally, they have marked their footprint in Bermuda catering to non-US institutional clienteles.
Coinbase’s Base mainnet saw the light of day recently and was met with an overwhelming user response within days.
On another note, CEO Brian Armstrong is actively delving into opportunities to infuse the Bitcoin Lightning Network (LN) into the company’s ecosystem.