Coinbase Global has earned approval from the National Futures Association to offer eligible U.S. customers crypto futures, the company said Wednesday.
The largest crypto exchange in the U.S. in September 2021 filed an application with the NFA, a self-regulatory organization overseen by the CFTC, to register as a futures commission merchant, which is essentially a brokerage that would allow investors to buy and sell futures on Coinbase’s platform.
Futures are contracts that allow traders to bet on whether markets such as oil, wheat or the S&P 500 will go up or down. Traders who want to buy or sell futures must post cash collateral, called margin, at an FCM.
