Top-rated cryptocurrency exchange, Coinbase, has achieved a new regulatory milestone as it seeks to expand its products for customers in the U.S.
The company revealed it has secured approval from the U.S. Commodity Futures Trading Commission (CFTC) to expand regulated access to global crypto derivatives markets for U.S. traders.
Coinbase as first American FCM offering global crypto derivatives
In an official announcement shared on Friday, May 29, Coinbase revealed that it has officially become the first CFTC-regulated futures commission merchant (FCM) allowed to offer global crypto perpetual futures and options for its customers in the U.S.
With this development, institutional investors in America will be able to exclusively explore all of crypto's largest markets through a fully regulated platform.
Moreover, they will now be able to trade instruments that have been previously dominated by offshore platforms, potentially boosting crypto adoption in the country.
While Deribit, one of the world's largest crypto derivatives platforms, currently holds over $31 billion in Bitcoin options open interest, Coinbase further revealed that it now offers institutional clients access to global crypto options through Deribit.
In addition to this, Coinbase shared future plans to enhance the offering with additional collateral types and perpetual futures products in the near future.
CEO Armstrong reacts
Following the announcement, the CEO of Coinbase, Brian Armstrong, commented on the development while spotlighting its relevance for crypto traders in the U.S.
Armstrong noted that the development marks a huge milestone for the American crypto ecosystem as American users had previously been excluded from about 80% of the global crypto market due to restrictions surrounding perpetual futures and options products.
However, American users now have exclusive access to the global crypto derivatives market, all thanks to the CFTC's latest approval.
Dan Burgin
