Coinbase Receives NFA Approval to Offer Crypto Futures Trading to US Customers

Coinbase today announced that it has gotten the green light from the National Futures Association (NFA) to operate as a Futures Commission Merchant (FCM). This allows for eligible customers in the United States to access cryptocurrency futures directly from Coinbase’s platforms. Here’s what you need to know:

• NFA Approval: Coinbase gained regulatory approval from the NFA, a self-regulatory organization designated by the Commodity Futures Trading Commission (CFTC).
• Crypto Futures Access: This empowers Coinbase to offer eligible US customers the opportunity to engage in crypto futures trading.
• Regulated and Compliant: Coinbase said in a press release that the approval underscores its unwavering commitment to maintaining a regulated and compliant business operation.
• Coinbase also recognized that this is a major milestone. Derivatives trading currently represents 75% of crypto trading volumes.
• “The ability to trade using margin gives customers leverage and access to the crypto market with less upfront investment than traditional spot trading. Being able to express long and short positions, investors also use derivatives to manage risk on their underlying crypto assets.“