Coinbase Files Application To Trade Bitcoin Futures

The largest U.S.-based crypto exchange could soon offer crypto futures and derivatives on its trading platform.

What Happened: Coinbase Global Inc (NASDAQ: COIN) has filed an application with the National Futures Association (NFA) to become a registered Futures Commission Merchant.

Today, Coinbase filed an application with the NFA to register as an FCM → Futures Commission Merchant.

This is the next step to broaden our offerings and offer futures and derivatives trading on our platforms.

👉 Goal: Further grow the cryptoeconomy.

— Coinbase (@coinbase) September 15, 2021

The crypto exchange stated on Twitter that the move was the next step towards expanding its existing offerings with the broader goal of further growing the cryptoeconomy.

Earlier this month, Coinbase ran into trouble with the U.S. Securities and Exchange Commission (SEC) when it briefed the regulator about its upcoming “Lend” product.

The SEC reportedly responded by calling the Lend product a security without explaining why and proceeded to subpoena company records and demanded employee testimony.

Coinbase CEO Brian Armstrong called the SEC’s behavior “sketchy” in a series of tweets explaining the crypto exchange’s version of events.

“Look.….we're committed to following the law. Sometimes the law is unclear. So if the SEC wants to publish guidance, we are also happy to follow that,” he said in the tweet.

“But in this case they are refusing to offer any opinion in writing to the industry on what should be allowed and why, and instead are engaging in intimidation tactics behind closed doors. Whatever their theory is here, it feels like a reach/land grab vs other regulators.”

“Meanwhile, plenty of other crypto companies continue to offer a lend feature, but Coinbase is somehow not allowed to,” he added.

Price Action: Coinbase shares are trading down 2.35% on Thursday morning at a price of $241.26. In crypto markets, the leading digital asset Bitcoin (CRYPTO: BTC) was trading above $47,000 at the time of writing.

Photo:  Jeremy Bezanger on Unsplash