Cryptocurrency exchange giant Coinbase (COIN) has achieved a significant milestone by receiving approval to list crypto futures in the United States. Marking a culmination of a two-year journey since its initial application. Coinbase Financial Markets has been granted the green light by the National Futures Association (NFA) to operate as a Futures Commission Merchant (FCM). A development heralded by the company in a statement released on Wednesday. This achievement reinforces Coinbase’s position as a trailblazer in the cryptocurrency industry.
The NFA, a self-regulatory organization holding authorization from the Commodity Futures Trading Commission (CFTC), plays a pivotal role in the derivatives market. The approval for Coinbase’s FCM status came after the exchange’s submission for NFA membership back in September 2021.
With this groundbreaking development, Coinbase has solidified its status as the first crypto-centric platform within the U.S. To introduce regulated and leveraged crypto futures, while concurrently offering traditional spot trading. Andrew Sears, CEO of Coinbase Financial Markets, underscored the strategic significance of this advancement. He stated, “Offering US investors access to secure and regulated crypto futures is key to unlocking growth and enabling broader participation in the crypto economy.”
Coinbase Elevates its Industry Leadership
The journey towards regulatory approval for crypto futures has been a gradual process. Both institutional and regulatory players recognise the potential of these financial instruments. Cboe Digital, the cryptocurrency unit of Cboe Global Markets, was granted approval by the CFTC in June to offer margined bitcoin and ether futures contracts. This trend towards embracing regulated crypto activities underlines the importance of protecting consumers while also fostering accountability, oversight, transparency, and risk management. As emphasized by CFTC Commissioner Christy Goldsmith Romero during the time of approval.
Coinbase’s shares (COIN) on the Nasdaq market surged over 4% during the initial trading hours, opening at $82.49. At the time of this writing, they were hovering around $81.60, reflecting an increase of approximately 3%. This market response underscores the enthusiasm of investors and market participants regarding Coinbase’s pioneering move into the regulated crypto futures domain.