Shares of Coinbase rose substantially before the opening bell on Wednesday after the company said that it had gained regulatory authority to offer qualifying customers in the U.S. federally regulated crypto futures trading.
June saw the U.S.
Binance and Coinbase were sued by the Securities and Exchange Commission on the grounds that they had broken the law by functioning as securities exchanges without first registering with the organization.
The National Futures Association has granted Coinbase regulatory clearance to act as a futures commission merchant, the company announced on Wednesday.
According to the cryptocurrency exchange, it applied to the association in 2021.
Following clearance, Coinbase said qualified U.S. users will be able to use Coinbase Financial Markets to access regulated derivatives products under the control of the Commodity Futures Trading Commission and the NFA.
The business stated that it is now able to provide bitcoin and ether futures contracts for cryptocurrencies.
Futures are derivative contracts to purchase or sell an item at a future time at a predetermined price.
According to Coinbase, we think that the ability to offer regulated crypto products to American customers marks a turning point.
This significant achievement reinforces our commitment to run a regulated and compliant company and provide our clients with the most reliable and secure crypto-native platform.
Currently, there is a notice on the Coinbase website stating that U.S.-regulated futures trading will be available soon.
It invites individuals to join its waitlist.
The business previously declared its intention to begin offering institutional investors the ability to trade bitcoin and ether futures on its Coinbase Derivatives Exchange in June.
Before the market opened, shares of Coinbase Global Inc. increased by more than 5%.
