Coinbase Applies to NFA to Offer Cryptocurrency Futures Trading

Coinbase, the top U.S. cryptocurrency exchange, has submitted an application to register as a Futures Commission Merchant (FCM) with the National Futures Association (NFA).

Details are unclear, but the pending application was filed Sept. 15 under the name "Coinbase Global Inc.", according to the NFA website.

On Sept. 16, Coinbase highlighted the move in a tweet, saying "this is the next step in expanding our product offerings and offering futures and derivatives trading on our platform. Goal: Further develop the crypto economy." "

If Coinbase becomes an NFA-approved FCM member, the company will need to register with the U.S. derivatives regulator the Commodity Futures Trading Commission (CFTC) in order to obtain approval.

The cryptocurrency derivatives market dwarfs the spot market in size, and despite a lot of regulatory FUD (fear, uncertainty, and doubt), derivatives have exploded in popularity in 2021. According to data from CoinGecko, the market processed more than $143 billion in trades in the past 24 hours. Binance, FTX, and Bybit currently lead with 24-hour open interest at $10.1 billion, $6.8 billion, and $3.8 billion.

The U.S. Securities and Exchange Commission (SEC) has previously threatened to sue Coinbase if it continues to launch USDC lending products. Coinbase hopes its futures and derivatives business will go much smoother than its plans to offer USDC lending products.

Coinbase also sold $2 billion worth of junk bonds this week, with orders for seven-year and 10-year bonds valued at $7 billion in the offering, The Economic Times reported Sept. 15.

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