A representation of the cryptocurrency can be seen in front of the Coinbase logo in this image dated March 4, 2022. REUTERS/Dado Ruvic/Illustration/File Photo acquire license rights
Aug 16 (Reuters) – Coinbase Global (COIN.O) announced on Wednesday that it had received approval to offer cryptocurrency futures to US retail customers, winning a key regulatory victory despite defeating a lawsuit filed by the Securities and Exchange Commission (SEC) fights.
This move allows Coinbase to offer Bitcoin and Ether futures directly to eligible US customers. Until now, only their institutional customers could trade in such products.
Following approval from the National Futures Association (NFA), a self-regulatory organization designated by the Commodity Futures Trading Commission (CFTC), Coinbase shares rose 3% to $81.55.
“This is a critical milestone that reaffirms our commitment to operating a regulated and compliant business,” Coinbase said.
The company has openly criticized the SEC, which accused Coinbase of operating illegally in a June lawsuit because it failed to register as an exchange.
CEO Brian Armstrong also said that more U.S. crypto firms could head overseas due to a hostile regulatory environment, and that SEC Chairman Gary Gensler’s “enforcement first” approach could stifle innovation in the industry.
The NFA approval, which came almost two years after Coinbase submitted the application, could allow the company to expand into a largely untapped market.
The global derivatives market accounts for almost 80% of the total crypto market, with leveraged bets on futures and other derivatives often being the cause of overall market volatility.
According to research firm CCData, the volume of crypto derivatives traded globally was about $1.85 trillion in July.
Reporting by Niket Nishant in Bengaluru; Edited by Saumyadeb Chakrabarty
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