Coinbase Disrupts U.S. Retail Crypto Trading with Futures

• Cryptocurrency exchange Coinbase will offer regulated futures trading to U.S. retail investors through Coinbase Financial Markets.
• The exchange secured regulatory approval for futures trading in the United States earlier this year.
• The exchange aims to make its services available to a broader range of users.

Throughout 2023, Coinbase has grappled with regulatory troubles within the United States, including lawsuits and allegations from the Securities and Exchange Commission.

However, the exchange has continued to expand its services, against this tide of sentiment.

Following the National Futures Association (NFA) approval for futures trading on its platform in August, Coinbase is now introducing a new addition to its portfolio for U.S. users.

Expansion Into Regulated Crypto Futures

On November 1st, Coinbase announced the commencement of futures contracts trading for eligible U.S investors, through its Coinbase Futures Markets (CFM).

Users can now leverage crypto futures contracts, tailored to allow participation with smaller positions, at 1/100th of a Bitcoin and 1/10th of an Ethereum . The futures contracts provide traders with leveraged trading, as well as risk management and diversification tools to aid market speculations. 

Coinbase Financial Markets CEO Andrew Sears emphasized that “Leverage in futures trading can work for you or against you. The risk of loss using leverage can exceed your initial investment amount”, warning users of the inherent risks of leverage in futures trading. Users are advised to explore the ‘Coinbase Learn’ educational content to acquire essential trading knowledge and effective risk management.

The new feature is accessible through the Coinbase Advanced trading platform via CFM, and on the website. CFM also highlighted plans to expand its accessibility by introducing futures trading on the Coinbase mobile app, catering to a broader audience of traders.

Read more on the ongoing regulatory troubles involving Coinbase and the United States SEC:
SEC Intensifies Legal Clash Against Coinbase In New Lawsuit  

Taiwan authorities have recently cracked down on an $320M crypto laundering ring. Find out more:
Taiwan Smashes Crypto Laundering Ring Amid Regulatory Shift