Coinbase, the largest cryptocurrency exchange in the U.S., has become the first regulated entity in the country to offer both spot trading and futures derivatives in the cryptocurrency space.
The exchange has received regulatory approval from the National Futures Association (NFA) to offer crypto futures derivatives to eligible U.S. clients. Initially, futures contracts for Ether and Bitcoin will be available.
“Major moment for crypto regulatory clarity in the U.S. This has been a multi-year process toward approval, and we’re excited to finally be launching federally regulated crypto derivatives with margin to our U.S. customers. When there is a clear path to register, we do, ” said Coinbase CEO and co-founder Brian Armstrong.
The approval marks a major step towards regulatory clarity in the U.S., coming nearly two years after Coinbase applied to become a registered Futures Commission Merchant (FCM) in September 2021. Derivatives constitute nearly 75% of all crypto trading activity worldwide.
Last year, Coinbase acquired FairX, a CFTC-regulated exchange, to offer derivatives products, including bite-sized futures contracts to retail traders and larger contracts to institutional investors. In May, Coinbase launched its international exchange, offering perpetual swaps, a derivative similar to a futures contract.
Interested users can join the waitlist for the futures offering.
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