Coinbase Financial Markets Launches US Regulated Crypto Futures Trading
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In Brief
Coinbase Financial Markets, Inc. has secured regulatory approval from the National Futures Association (NFA), a CFTC-designated self-regulatory organization, to operate a Futures Commission Merchant (FCM) and offer eligible US customers access to crypto futures from our platforms.
Coinbase Financial Markets, has obtained regulatory approval to offer crypto futures trading to eligible US customers.
As the crypto market continues to mature and evolve, regulatory endorsements of this magnitude can be pivotal for the overall growth and integration of the crypto-economy into mainstream financial systems.
The National Futures Association (NFA), an organization designated by the Commodity Futures Trading Commission (CFTC) for self-regulation, has given Coinbase the nod to function as a Futures Commission Merchant (FCM).
Coinbase said that it has received regulatory compliance and now combines traditional spot crypto trading with regulated, leveraged crypto futures.
A Step Towards Transparent Crypto Trading
According to Greg TusarĀ VP of Institutional Product for Coinbase, the companycurrently dedicates its focus towards clarity and regulation.Ā Tusar claims that clear regulations can boost confidence for both individual and institutional investors.
Access to a CFTC-regulated crypto derivatives market is essential to unlocking significant growth and enabling broader participation in the cryptoeconomy.Ā
said Coinbase’s Tusar.
In September 2021, Coinbase initiated its process with the NFA to register as an FCM. Thecompany has since collaborated with regulators to align with the CFTC‘s standards and customer protection mandates. Coinbase’s decision to become a public entity in the US indicates their strong perspective on the US’s role in the global crypto-economy and consumer protection standards.
What This Means for the US Crypto Economy
The company has currently aligned its products with its stated objectives in the US cryptocurrency sector.
Following the regulatory approval, a wider portion of the US populationĀ will have access to the crypto-economy, potentially strengthening the US’s role in digital innovation.
Many speculate that the move might also pave the way for other companies to explore similar avenues, fostering a more competitive and diverse digital ecosystem in the country.
With the FCM’s green light, Coinbase Financial Markets is now positioned to offer cryptocurrency futures trading to its US clientele. This regulatory decision establishes a precedent, potentially guiding other organizations considering the launch of cryptocurrency futures trading.
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Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.
More articlesNik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.
