Cryptocurrency exchange platform Coinbase has received approval from the National Futures Association (NFA) to offer cryptocurrency futures in the US.
Following the approval, Coinbase can now operate a Futures Commission Merchant (FCM) platform.
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In a statement on its blog, head of institutional product at Coinbase Greg Tusar said: “We believe this is a watershed moment to be able to bring regulated crypto products to US customers.
“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.”
The global crypto derivatives market represents around 75% of crypto trading volume worldwide and is a critical trader access point.
In June, the Securities and Exchange Commission (SEC) launched a lawsuit against Coinbase in which it alleged that the company had failed to register and was operating illegally.
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By GlobalDataThe SEC alleged Coinbase’s failure to register deprived investors of significant protections, including inspection by the SEC, recordkeeping requirements, and safeguards against conflicts of interest.
In a 6 June tweet, co-founder Brian Armstrong criticised the SEC for its approach: “Instead of publishing a clear rule book, the SEC has taken a regulation by enforcement approach that is harming America.”
The NFA’s approval comes two years after Coinbase first filed its application.
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