Coinbase registered as a qualified broker! Can now offer cryptocurrency futures trading to eligible users

The leading U.S. cryptocurrency exchange Coinbase, which has long been plagued by SEC regulatory issues, recently received good news as it has been approved by a CFTC subsidiary to become a qualified broker, allowing it to offer cryptocurrency futures trading services to U.S. users.

Coinbase Registers as Futures Commission Merchant

According to an announcement by Coinbase, the company has secured approval from the National Futures Association (NFA) and a self-regulatory organization designated by the Commodity Futures Trading Commission to become a registered Futures Commission Merchant (FCM) to offer cryptocurrency futures trading services to eligible customers in the United States.

Coinbase stated that they submitted an application to the NFA to register as a futures broker in September 2021 and acquired the futures exchange FairX regulated by the CFTC in 2022. FairX is now known as Coinbase Derivatives Exchange, currently open to third-party brokers, futures brokers, and market makers, and has established a deep liquidity pool with a nominal trading volume of $4.7 billion in BTC and $2 billion in ETH futures to date.

"Approving U.S. customers to use regulated cryptocurrency derivatives will enable more people to enter the U.S. crypto economy securely, helping the United States maintain its position as a center for digital innovation," Coinbase stated.

As previously reported, Coinbase launched an offshore derivatives exchange in Bermuda in June this year, allowing its international users to trade Bitcoin and Ethereum perpetual contracts on the platform. Coinbase mentioned that it will provide more updates on when U.S. users can start using these features in the coming months.