Coinbase Global announced on Wednesday that it had received regulatory approval to provide cryptocurrency futures trading to retail customers in the United States. This marks a significant regulatory victory for Coinbase, despite an ongoing lawsuit with the Securities and Exchange Commission (SEC).
With this approval, Coinbase can now offer bitcoin and ether futures directly to eligible US customers. Previously, these products were only available to institutional clients.
Following the announcement, the shares of Coinbase rose by 3% to $81.55. The approval was granted by the National Futures Association (NFA), a self-regulatory organization designated by the Commodity Futures Trading Commission (CFTC).
“This is a critical milestone that reaffirms our commitment to operate a regulated and compliant business,” said Coinbase.
Coinbase has openly criticized the SEC, which filed a lawsuit in June alleging that the company operated illegally by failing to register as an exchange.
CEO Brian Armstrong has voiced concerns that a hostile regulatory environment and SEC Chair Gary Gensler’s enforcement-first approach could stifle innovation in the industry, leading more US crypto companies to move offshore.
Obtaining NFA approval, nearly two years after submitting the application, could potentially allow Coinbase to tap into an untapped market segment.
The global derivatives market represents almost 80% of the entire crypto market, and volatility in the broader market is often influenced by leveraged bets on futures and other derivatives.
According to research firm CCData, the global crypto derivatives trading volumes reached approximately $1.85 trillion in July.