In a landmark approval, Coinbase (NASDAQ: COIN) has become the first crypto company ever to win regulatory approval to offer futures and derivatives trading.
After nearly two years of back and forth with regulators, Coinbase has overcome the final hurdles to be able to roll out futures trading to customers.
The big picture:
- Crypto as a whole has struggled with regulatory uncertainties and obstacles, creating friction for wider adoption and institutional participation
- This new approval for Coinbase sets a precedent for crypto to make yet another big push into Wall Street and provides a new onramp for trading
The fine print:
- It’s the National Futures Association who granted Coinbase the approval- not the SEC
- This approval also means Coinbase is now registered with the Commodities Future Trading Commission
- Coinbase says it will begin rolling out futures trading within a few weeks to customers
- Speculations are already beginning around how much revenue futures and derivatives trading will generate for Coinbase, as it’s a potentially explosive new source of trading activity for the largest crypto exchange in the US