In an effort to broaden its products, the largest crypto exchange in North America, Coinbase, has filed an application with the National Futures Association (NFA) to offer futures and derivatives on its platform. This was revealed by the association earlier today.
According to Coinbase, the development aims to expand its product offerings to its users. The Brian Armstrong-led exchange wrote that “this is the next step to broaden our offerings and offer futures and derivatives trading on our platforms.”
Right now, the NFA official website has listed Coinbase Global Inc membership application as pending. If the exchange is able to secures an approval, it would need to register with the Commodity Futures Trading Commission (CFTC), plus a separate application with the United States Securities and Exchange Commission for a particular product.
The NFA is an independent and self-regulatory organization overseeing the U.S. derivatives sector, designated as a registered futures association by CFTC. FCM is relevant for accepting buy and sell orders relating to futures or options in exchange for money or assets.
It would interest you to know that Coinbase’s battle with SEC continues, as the exchange is being dragged on its proposed lend services, which the financial regulator considers to be a security and a violation of its laws.