Coinbase Global said on Wednesday it had secured approval to offer cryptocurrency futures to US retail customers, scoring a major regulatory win even as it battles a lawsuit from the Securities and Exchange Commission (SEC).
The move will allow Coinbase to offer bitcoin and ether
futures directly to eligible US customers. Until now, only its institutional
clients could trade in such products.
Coinbase shares climbed 3 percent to $81.55 after the
approval, which was granted by the National Futures Association (NFA), a
self-regulatory organisation designated by the Commodity Futures Trading
Commission (CFTC).
"This is a critical milestone that reaffirms our
commitment to operate a regulated and compliant business," Coinbase said.
The company has openly criticized the SEC, which in a June
lawsuit accused Coinbase of operating illegally because it had failed to
register as an exchange.
CEO Brian Armstrong has also said more US crypto companies
could move offshore due to a hostile regulatory environment and that SEC Chair
Gary Gensler's enforcement-first approach could stifle innovation in the
industry.
The NFA approval, which came nearly two years after Coinbase
filed its application, could allow the company to expand into a largely
untapped market.
The global derivatives market represents almost 80 percent
of the entire crypto market, with leveraged bets on futures and other
derivatives often at the root of volatility in the wider market.
In July, crypto derivatives trading volumes globally totaled
about $1.85 trillion, according to research firm CCData.
© Reuters
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