2023-08-16 14:45:41
© Reuters. REUTERS/Dado Ruvic
(Reuters) – Coinbase (NASDAQ:) said on Wednesday it has won approval to offer cryptocurrency futures to U.S. retail customers, a key regulatory victory, even as the exchange faces a lawsuit from the capital markets watchdog. of the country, the SEC.
Shares of the company rose 5.5% to $83.52 in premarket trade. Approval was granted by the National Futures Association (NFA), a self-regulatory organization designated by the Commodity Futures Trading Commission (CFTC).
“This is an important milestone that reaffirms our commitment to operating a regulated and compliant business,” said Coinbase.
The company has openly criticized the SEC, which in a June lawsuit accused Coinbase of operating illegally because it failed to register as an exchange.
Coinbase Chief Executive Brian Armstrong also said that more U.S. cryptocurrency companies may move abroad due to a hostile regulatory environment and that SEC Chairman Gary Gensler’s first-pass approach could stifle innovation. in the sector.
The NFA approval, which comes nearly two years after Coinbase filed the application, could allow the company to expand into a largely untapped market.
The global derivatives market makes up nearly 80% of the entire cryptocurrency market, with leveraged betting on futures and other derivatives often at the root of volatility in the broader market.
In July, global cryptocurrency derivatives trading volumes totaled around $1.85 trillion, according to research firm CCData.
(Por Niket Nishant)
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