Coinbase Global said on Wednesday it has received approval to offer cryptocurrency futures to U.S. retail customers, scoring a major regulatory victory even as the company is in a lawsuit with the U.S. Securities and Exchange Commission (SEC).
The move will allow Coinbase to offer bitcoin and ethereum futures directly to eligible U.S. customers. So far, only its institutional clients can trade such products.
Coinbase shares rose 3 percent to $81.55 (roughly Rs 7,100) after the National Futures Association (NFA), a self-regulatory organization appointed by the Commodity Futures Trading Commission (CFTC), approved the approval.
“This is an important milestone and reaffirms our commitment to operating a regulated and compliant business,” Coinbase said.
The company has publicly criticized the U.S. Securities and Exchange Commission, which accused Coinbase of operating illegally in a lawsuit in June because it failed to register as an exchange.
CEO Brian Armstrong also said more U.S. cryptocurrency firms could move overseas due to an unfavorable regulatory environment, while SEC Chairman Gary Gensler’s enforcement-first approach could stifle innovation in the industry.
The NFA approval comes nearly two years after Coinbase filed, and could allow the company to expand into a largely untapped market.
The global derivatives market accounts for almost 80 percent of the entire cryptocurrency market, and leveraged bets on futures and other derivatives are often the source of volatility across the market.
According to research firm CCData, global cryptocurrency derivatives trading volume totaled around $1.85 trillion (roughly Rs 1,53,78,100 crore) in July.
© Thomson Reuters 2023
(This story was not edited by NDTV staff and was automatically generated from syndicated feeds.)
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