Coinbase’s stock rises as company cheers ‘important milestone’
Coinbase Global Inc.’s shares were getting a boost in Wednesday’s premarket action after the cryptocurrency marketplace said that it won approval to offer crypto futures trading to its customers.
The company said it would be the first crypto-native entity to offer traditional spot crypto trading directly alongside crypto futures, after the National Futures Association gave the business a regulatory nod.
“We believe this is a watershed moment to be able to bring regulated crypto products to U.S. customers,” Coinbase COIN, -0.23% shared in a blog post.
Coinbase further called the approval an “important milestone” given that it says some 75% of crypto trading volume worldwide comes from the derivatives market.
Shares of Coinbase were gaining more than 2% in premarket trading Wednesday.
The regulatory approval for futures comes as Coinbase dukes it out with regulators over other aspects of its business.
The Securities and Exchange Commission earlier this year sued Coinbase, alleging the company operates an unregistered securities exchange. “Instead of publishing a clear rule book, the SEC has taken a regulation by enforcement approach that is harming America,” Coinbase Chief Executive Brian Armstrong tweeted at the time.
Coinbase appeared to give a nod to the regulatory picture in Wednesday’s futures blog post.
“Where regulations are clear and sensible, we will work with regulators to receive the authorizations needed to offer products that align with our purpose of using crypto to update the financial system to advance economic freedom and opportunity,” the company said.
Coinbase said its futures approval “reaffirms our commitment to operate a regulated and compliant business.”