Coinbase Financial Markets, Inc. secured regulatory approval from the National Futures Association (NFA), a Commodity Futures Trading Commission (CFTC)-designated organization, to operate a Futures Commission Merchant (FCM) and offer U.S. customers access to crypto futures through Coinbase Financial Markets.
“We believe this is a watershed moment to be able to bring regulated crypto products to U.S. customers,” Greg Tusar, vice president, institutional product for Coinbase, said in a release. “Where regulations are clear and sensible, we will work with regulators to receive the authorizations needed to offer products that align with our purpose of using crypto to update the financial system to advance economic freedom and opportunity.”
Coinbase applied with the NFA to register as an FCM in September 2021.
“Our team has worked with regulators since then to ensure we will comply with all the necessary regulations and that our FCM’s business model meets the CFTC’s customer protection requirements,” Tusar said. “Access to a CFTC-regulated crypto derivatives market is essential to unlocking significant growth and enabling broader participation in the crypto-economy.”
The regulatory approval makes Coinbase the first crypto-native leader to directly offer eligible U.S. customers traditional spot crypto trading alongside regulated crypto futures, according to the company.
In 2022, Coinbase acquired FairX, a CFTC-regulated futures exchange renamed the Coinbase Derivatives Exchange. The exchange launched nano Bitcoin and Ethereum futures contracts, sized for the retail investor, and larger versions for the institutional market on June 5.
“Obtaining FCM approval was our next step in bringing these transparent and secure markets to our customers so they can access regulated futures contracts alongside our liquid spot market,” Tusar said. “In the coming months, we’ll provide additional information on how our verified U.S. customers can access our futures offering.”