Coinbase Approved to Offer Crypto Futures in the U.S Days After Expansion to Canada

Despite being in the midst of a battle with the Securities and Exchange Commission (SEC), Coinbase has done well to not only continue operations as normal but expand upon them.  The most recent example of this sees the popular exchange granted approval to begin offering futures trading in the United States.  The following is a brief look at this announcement, in addition to two others from recent days.

Greenlight From The National Futures Association (NFA)

Coinbase has just announced that, after a multi-year process, it has been granted approval to operate as a Futures Commission Merchant (FCM).  By granting this approval, the FCM opens the door for Coinbase to begin offering U.S. customer access to trading crypto-based futures.

“Coinbase will now be the first crypto-native leader to directly offer traditional spot crypto trading alongside regulated and leveraged crypto futures, on an integrated trading solution for our verified customers.”

Coinbase notes that this approval, which saw its process begin in 2021, highlights the company’s “…commitment to operate a regulated and compliant business,”.

Interestingly, there is a clear undertone in this announcement by Coinbase, that indicates its continued disapproval of the SEC and its approach of regulating through enforcement.  This is made clear through statements like “Where regulations are clear and sensible, we will work with regulators”, and, “…regulation and transparency are critical and build confidence for individual customers and institutions”.

In Solidarity

Tired of waiting, Coinbase has recently led the large alongside a growing group of like-minded companies to unify and advocate for “clear, sensible regulation” surrounding cryptocurrencies in the United States.

This initiative, which has adopted the slogan ‘Stand with Crypto‘, has a goal of leveraging “…the underlying technology of the blockchain to help organize the community into a powerful voice advocating for policies that will update our financial system and support economic empowerment”

Coinbase notes that this initiative is of particular importance to U.S. citizens, with 87% believing that the financial system needs to be updated.  Interestingly, Coinbase goes on to show through various statistics that of the 50M U.S. citizens that own cryptocurrencies, party lines do not play a notable role.  What is skewed, however, is an increase in positivity towards the sector among young investors, showing that the important of cryptocurrencies should only grow over time.

Coinbase has also developed an accompanying website that allows individuals to show their support through donations and a petition.  The site also goes as far as listing and ranking politicians by their stances and actions.  For example, Brad Sherman and Elizabeth Warren are each listed as being ‘strongly against’ cryptocurrencies, while others like Ritchie Torres and Josh Gottheimer as listed as being ‘very supportive’.

Servicing the Great White North

Over the past year, a crackdown by Canadian regulators on crypto exchanges has resulted in a small exodus of companies from the nation’s borders.  No longer can most Canadians access services from exchanges like KuCoin, Binance, etc.  However, there have been a select few that have taken this change as an opportunity, looking to capitalize on a newfound lack of competition.  This was most recently on display with Coinbase after the exchange announced that it was officially entering the Canadian market.

Explaining its decision to expand north of the border, Coinbase states,

“Why Canada, you ask? Our decision to delve into the dynamic Canadian crypto landscape was informed by a myriad of compelling factors.

Ranked as the world’s third-most crypto-aware nation, Canada boasts an enthusiastic local tech ecosystem that, combined with its strides towards a robust regulatory framework, positions it as a potential global cryptoeconomy leader.

This sentiment is reinforced by the Ontario Securities Commission’s survey, indicating that over 30% of Canadians are poised to venture into the world of crypto assets within the year.”

From the get-go, Coinbase indicates that it will support simple fund transfers, interact payment rails, staking rewards, priority support, and more.  While there may be cheaper-to-use solutions on offer within Canada, the reputation and easy-to-use platform on offer by Coinbase will no doubt go a long way in making the exchange one of the most popular in the country.