Coinbase has received approval from the US National Futures Association (NFA) to introduce Bitcoin and Ethereum futures trading within the country.
The NFA, an self-regulatory authority designated by the Commodities and Futures Trading (CFTC), has granted Coinbase the green light, marking it as the pioneering exchange to provide such services in the United States.
The approval has been extended to Coinbase Financial Markets to function as a Futures Commission Merchant (FCM), as outlined in an announcement on Wednesday.
This designation empowers FCMs to engage in the buying and selling of futures contracts, akin to market makers.
The process of Coinbase's association with the NFA commenced in September 2021.
The recent announcement heralds a broader scope for participation in the crypto market. Previously, citizens of the U.S. were barred from engaging in crypto futures trading.
This regulatory development has been termed a "watershed moment" by Coinbase, highlighting its importance for the emerging crypto sector.
Coinlive previously reported on how Coinbase continues to be in a legal tussle with the US Securities and Exchange Commission (SEC).
The regulator's confrontational approach towards the fledgling sector has prompted lawsuits against major exchanges.
Prominent industry players like Binance, Kraken, and Coinbase, along with others, have all encountered SEC scrutiny due to their crypto-based financial products. Termed "regulation by enforcement," this approach has been met with criticism from multiple stakeholders within the industry.