The National Futures Association (NFA) has granted Coinbase cryptocurrency exchange the approval to offer crypto futures trading for institutional investors and eligible clients in the United States.
Coinbase announced on August 16 that the company is now authorized to operate as a Futures Commission Merchant (FCM) platform. The approval permits Coinbase to offer Bitcoin and Ether futures contracts on its CFTC-regulated derivatives exchange.
In a statement, Coinbase said, “This is an important milestone that reaffirms our commitment to operate a regulated and compliant business and be the most trusted and secure crypto-native platform for our customers.”
The new futures trading service will not be immediately available in the United States, according to a notice on Coinbase’s cryptocurrency futures web page.
“Regulated U.S. futures trading is imminent. Sign up for the waitlist and receive early access,” the company’s website stated.
According to Coinbase’s announcement, the global crypto derivatives market accounts for 75% of global crypto trading volume. “The ability to trade on margin provides customers with leverage and access to the cryptocurrency market with a lower initial investment than traditional spot trading,” the company explained.
As previously reported, Coinbase will launch BTC and ETH futures trading for institutional investors in June. Coinbase once intended to establish a derivatives exchange in Bermuda as part of its global expansion strategy.
Coinbase is in a legal dispute with the U.S. Securities and Exchange Commission. At the beginning of June, the regulator filed a lawsuit against Coinbase, alleging that the exchange violated local securities laws by selling unregistered securities.
