Coinbase gets approval to allow crypto futures trading in US

(Reuters) – Coinbase Global announced on Wednesday that it had received regulatory approval to allow U.S. retail customers to trade crypto futures. This news caused shares of the exchange to rise by 5% in premarket trading.

Coinbase expressed that the approval from the National Futures Association was a “critical milestone that reaffirms our commitment to operate a regulated and compliant business.”

In June, Coinbase was hit with a lawsuit by the U.S. Securities and Exchange Commission, which accused the company of operating illegally due to its failure to register as an exchange.

According to research firm CCData, crypto derivatives trading volumes reached approximately $1.85 trillion in July.

The derivatives market represents almost 80% of the entire crypto market, with leveraged bets on futures and other derivatives often being the cause of volatility in the wider market.

Reporting by Niket Nishant in Bengaluru; Editing by Saumyadeb Chakrabarty