Coinbase Obtains NFA Approval To Offer Crypto Futures
Milestone Date: August 16, 2023
Coinbase Financial Markets, a subsidiary of Coinbase Global, Inc. (popularly known as simply Coinbase) announced today that the exchange has received regulatory approval from the National Futures Association (NFA) to operate a Futures Commission Merchant (FCM) and offer eligible US customers access to crypto futures.
According to the NFA website, “The Commodity Exchange Act (CEA) requires certain firms and individuals that conduct business in the derivatives industry to register with the Commodity Futures Trading Commission (CFTC). CFTC regulations also require, with few exceptions, CFTC-registered firms to be NFA Members. The CFTC has delegated registration responsibility to NFA.”
The news marks Coinbase as the first crypto-native leader to offer access to regulated, leveraged, and cash-settled crypto futures. The company believes that granting US customers access to regulated crypto derivatives, which may result in loss, “will allow more people to access the crypto economy in the United States in a safe way that helps keep the US at the center of digital innovation.”
While Ethereum and Bitcoin futures trading is not immediately available to retail investors, Coinbase has a waitlist for US customers to sign up and get early access when it is ready.
“This is a critical 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,” Coinbase said in its announcement.
By Elizabeth Morrison
Published:August 16, 2023