Coinbase Success: The Exchange Gets Approval to Sell Bitcoin (BTC) and Ethereum (ETH) Futures Products in the US

It looks like Coinbase is marking a massive success these days. The crypto exchange has just won the right to sell BTC and ETH futures products in the US. Check out the latest reports about this below.

Coinbase, the American crypto exchange, has successfully obtained government approval to offer Bitcoin (BTC) and Ethereum (ETH) futures in the US.

The National Futures Association (NFA) has given Coinbase the green light to manage a futures commission merchant (FCM) and provide eligible US traders with BTC and ETH futures products.

FCMs are federally regulated entities that offer and accept futures contracts on securities and commodities. In September 2021, Coinbase filed an application with the NFA to register as an FCM.

The exchange noted that their team has worked diligently with regulators to ensure that they comply with all necessary regulations and that their FCM’s business model meets the CFTC’s (Commodity Futures Trading Commission) customer protection requirements.

They are excited to announce that approval has been secured, enabling eligible US customers to access regulated derivatives products through Coinbase Financial Markets and alongside the spot market for a seamless experience subject to the oversight of the CFTC and the NFA.

As per the blog post, it has been announced that Coinbase will be the pioneer crypto firm to provide both traditional spot market trading and federally regulated crypto futures.

The crypto exchange emphasizes the significance of this milestone, stating that derivatives contracts will expand the accessibility of digital assets and empower traders to manage risk more efficiently.

“The global crypto derivatives market represents ~75% of crypto trading volume worldwide and is a critical trader access point. The ability to trade using margin gives customers leverage and access to the crypto market with less upfront investment than traditional spot trading.”

The notes continued and said the following:

“Being able to express long and short positions, investors also use derivatives to manage risk on their underlying crypto assets.”