Coinbase has obtained approval to provide cryptocurrency futures trading to retail customers in the United States. The exchange has been granted this approval by the National Futures Association (NFA), a self-regulatory organization recognized by the Commodity Futures Trading Commission (CFTC). This achievement makes Coinbase the first crypto-native platform to offer both traditional spot crypto trading and leveraged crypto futures.
Having applied with the NFA nearly two years ago, Coinbase has been in continuous discussion with regulators to ensure compliance with regulations and to align its business model with the CFTC’s customer protection standards. Greg Tusar, Vice President of institutional products at Coinbase, expressed in a blog post, “We believe this is a watershed moment to be able to bring regulated crypto products to US customers.”
This approval marks a significant regulatory success for Coinbase, especially in light of its ongoing challenges with the Securities and Exchange Commission (SEC). Earlier this year, CEO Brian Armstrong suggested that “anything is on the table” regarding a potential relocation of the company’s headquarters outside the US.
Additionally, Coinbase has recently filed a lawsuit against the SEC, seeking a court mandate for the regulator to respond to a petition submitted last year concerning the “rules to govern the regulation” of digital assets. In turn, the SEC has filed a lawsuit against Coinbase, alleging that the company has been operating its crypto asset trading platform as an unregistered national securities exchange, broker, and clearing agency.
Tusar stated, “Where regulations are clear and sensible, we will work with regulators to receive the authorizations needed to offer products that align with our purpose of using crypto to update the financial system to advance economic freedom and opportunity.”