Futuristic Futures

Futuristic Futures

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  • Coinbase has received regulatory approval to provide cryptocurrency futures contracts to retail customers in the United States. This significant regulatory achievement comes amid Coinbase's legal battle with the Securities and Exchange Commission (SEC). The approval, granted by the National Futures Association, enables Coinbase to offer bitcoin and ether futures contracts directly to eligible US clients. In response to this development, Coinbase's shares saw a 3% increase, reaching $81.55.
  • Despite facing a lawsuit from the SEC, which alleged that Coinbase was operating unlawfully by not registering as an exchange, the company's successful pursuit of offering cryptocurrency futures contracts to retail clients underscores its ability to navigate the regulatory landscape and expand its services. 

Why it matters

This approval, which came nearly two years after Coinbase submitted its application, could allow the company to expand into a largely untapped market. The global derivatives market accounts for nearly 80% of the entire cryptocurrency market, with leveraged bets on futures and other derivatives often being the root cause of volatility in the broader market. In July, the total volume of crypto derivatives trading globally was about $1.85 trillion, according to research firm CCData.


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