United

Orca

Wednesday

Bitcoin

<div class="sg-post-des">
 The recent approval allows Coinbase to join the ranks of major derivative exchanges in the United States, CME, and CBOE. 
</div> 
<div class="cointelegraph"> 
 The <a rel="noopener noreferrer nofollow" title="approval" href="https://thebittimes.com/tag/approval.html">approval</a> for America’s largest digital asset exchange, Coinbase, to offer <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a> <a rel="noopener noreferrer nofollow" title="futures" href="https://thebittimes.com/tag/futures.html">futures</a> to U.S. retail customers is being seen as a <a rel="noopener noreferrer nofollow" title="major" href="https://thebittimes.com/tag/major.html">major</a> regulatory victory amid a heated battle with the country’s securities regulator. 
 On Aug. 16, the National Futures Association (NFA) — designated by the U.S. commodities regulator as a registered futures association — granted Coinbase permission&nbsp;to operate a Futures Commission Merchant (FCM) platform. 
 <h3 id="a-loud-signal">A loud signal</h3> 
 Some crypto industry commentators see the approval as a significant regulatory victory for Coinbase and crypto, given the U.S. Securities and Exchange Commission has accused the exchange of avoiding the registration of its offerings. 
 “If I were a judge I'd wonder why somehow [Coinbase] manages to register with the [CFTC] yet the [SEC] claims that Coinbase is unwilling to do the hard work to register," investment management firm Electric Capital founder Avichal Garg wrote in an Aug. 17 tweet. 
 <blockquote class="twitter-tweet"> 
 Getting an FCM via the @CFTC is a big deal. It takes years of work. If I were a judge I'd wonder why somehow @coinbase manages to register with the @CFTC yet the @SECGov claims that Coinbase is unwilling to do the hard work to register. https://t.co/axDHt8ya3F— Avichal - Electric ϟ Capital (@avichal) August 16, 2023 
 </blockquote> 
 Former CFTC Commissioner and policy head at a16z, Brian Quintenz, said that “Customers and innovation can both win when a regulator is open to having a constructive dialogue around new technology.” 
 Meanwhile, Coinbase CEO Brian Armstrong said the approval was a major moment for crypto clarity in the United States. 
 <figure> 
 <img src="https://s3.cointelegraph.com/uploads/2023-08/0a666ba0-d632-4698-8675-d27e612368a2.jpg" alt="" title=""> 
 <figcaption style="text-align: center;"> A response to Coinbase securing futures approval. Source: X/@SMTuffy 
 </figcaption> 
 </figure> 
 The move has also placed Coinbase in a position normally helmed by traditional finance firms. 
 Institutional exchanges, the Chicago Mercantile Exchange, and the Chicago Board Options Exchange currently offer Bitcoin and Ether futures in the United States.&nbsp; 
 Coinbase labeled the move as a “critical milestone,” adding it makes it the first crypto-native company to directly offer traditional spot crypto trading alongside futures products. 
 <h3 id="tapping-into-a-massive-market">Tapping into a massive market</h3> 
 In May, CoinGecko reported that the global crypto derivatives market was worth just under $3 trillion, while Coinbase highlighted that the global crypto derivatives market represents around three-quarters of all trading volumes. 
 “Since the global crypto derivatives market can be three to four times larger than spot, this approval increases Coinbase’s total addressable market,” Dan Dolev, an analyst at Mizuho Securities, wrote in a Wednesday note, as reported by Barron’s. 
 Orca Capital's Jeff Sekinger said “Coinbase is set to become a pivotal access point for traders,” adding that its new products will “cater to this demand and provide enhanced exposure and flexibility for investors.” 
 While CoinShares chief strategy officer Meltem Demirors said it was “exciting times in US crypto markets,” particularly given a pivot toward U.S. trading hours. 
 Related: Coinbase Derivatives Exchange set to roll out BTC and ETH futures 
 The firm initially unveiled plans to offer BTC and ETH <a rel="noopener noreferrer nofollow" title="futures" href="https://thebittimes.com/tag/futures.html">futures</a> contracts in mid-2022. The new <a rel="noopener noreferrer nofollow" title="approval" href="https://thebittimes.com/tag/approval.html">approval</a> will allow Coinbase to offer the <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a> <a rel="noopener noreferrer nofollow" title="futures" href="https://thebittimes.com/tag/futures.html">futures</a> directly to eligible U.S. retail customers, rather than just institutional clients. The exchange did not specify when it would become available, however. 
 Company stock (COIN) did not react to the news, dropping 1.56% on the day to reach $77.7 in after-hours trading, however, Coinbase shares are up 130% so far this year. 
 Cointelegraph reached out to Coinbase for further comments. 
 Magazine: Hall of Flame: Wolf Of All Streets worries about a world where Bitcoin hits $1M 
 <template data-name="subscription_form" data-type="markets_outlook"></template> 
</div>

Coinbase futures approval seen as a major win amid the war on crypto

Table of Contents

TheBitTimes

Other articles published on Aug 17, 2023

💥 New Update on Roobee.finance – Introducing the Marketplace!

Clash of Titans: Analyzing the Outcome of Mark Zuckerberg’s Jiu-Jitsu Skills Against Elon Musk’s ...

Stellar unveils open-source global payment service

EU Finance Ministers Give Approval, Bringing EU’s Crypto Legal Framework Closer to Becoming Law

Layer2 Network Linea Deploys ERC-20 Token Bridge, Completes Alpha Mainnet Launch

Stellar Price Prediction: Will XLM Price Take U-turn from EMAs?

Join our free newsletter for daily crypto updates!