Coinbase Approved to Offer Leveraged Crypto Futures Despite SEC Lawsuit

Coinbase, the largest cryptocurrency exchange in the United States, has received regulatory clearance from the National Futures Association (NFA) to provide cryptocurrency futures trading to eligible customers. The NFA, a self-regulatory organization sanctioned by the Commodity Futures Trading Commission (CFTC), granted approval to Coinbase Financial Markets Inc. This development allows Coinbase to function as a futures commission merchant (FCM), enabling it to extend regulated crypto futures access to eligible customers across its platforms.

Greg Tusar, Coinbase’s Vice President of Institutional Product, emphasized the significance of this approval, terming it a “critical milestone.” He highlighted Coinbase’s distinctive position as the “first crypto-native leader” capable of directly offering both conventional spot crypto trading and regulated, leveraged crypto futures to verified customers.

Trade on US-Banned Exchanges With No KYC 🤫

Tired of missing hot new listings because your favorite exchange is banned in the US? 🇺🇸

With RocketXchange you can finally trade on Kucoin, ByBit and more without registration or KYC! 🙌

Simply connect your wallet to access every coin. No VPN needed.

Seamlessly bridge between EVM, Solana, Cosmos and 100+ chains. Discover the next crypto gem with low fees.

Take your trading to the next level with:

  • Instant access to banned CEXs 🚫
  • No KYC required 🙅‍♂️
  • Trade on your terms – no registration required
  • Maintain full custody – tokens stay in your wallet
  • Access liquidity across leading DEXs and CEXs
  • Bridge assets quickly between any blockchain

Escape CEX limits today with RocketXchange!

Show more +

The global cryptocurrency derivatives market accounts for approximately 75% of the total crypto trading volume globally, making it a pivotal entry point for traders. Tusar noted that trading with margin grants customers leverage and entry into the crypto market with comparatively lower upfront investments compared to traditional spot trading. Moreover, derivatives play a crucial role in helping investors manage risks associated with their underlying crypto assets.

Coinbase’s strategic acquisitions include the CFTC-regulated futures exchange FairX, now rebranded as the Coinbase Derivatives Exchange. Open to third-party brokers, FCMs, and market makers, this exchange has established a robust liquidity pool, boasting notable notional trading volumes. In 2021 alone, the exchange witnessed trades of $4.7 billion worth of Bitcoin (BTC) futures and $2 billion worth of Ethereum (ETH) futures.

However, amidst these achievements, Coinbase is facing legal challenges within the U.S. The company is currently entangled in a lawsuit with the Securities and Exchange Commission (SEC), accused of functioning as an unregistered exchange, broker, and clearing agency. In a show of support for Coinbase, venture capital firms Andreessen Horowitz (a16z) and Paradigm jointly submitted an amicus brief. They argue that the SEC’s regulatory approach poses a threat to the growth and development of blockchain technology in the United States.

We recommend eToro

74% of retail CFD accounts lose money.
Active user community and social features like news feeds, chats for specific coins available for trading.
Wide range of assets: cryptocurrencies alongside other investment products such as stocks and ETFs.
Copy trading: allows users to copy thetrades of leading traders, for free.
User-friendly: eToro’s web-based platform and mobile app are user-friendly and easy to navigate.
eToro offers staking for certain popular cryptocurrencies like ETH, ADA, XTZ etc.
intelligent crypto
How are  regular people making returns of as much as 70% in a year with no risk?  By properly setting up a FREE Pionex grid bot - click the button to learn more.
Crypto arbitrage still works like a charm, if you do it right! Check out Alphador, leading crypto arbitrage bot to learn the best way of doing it.

CaptainAltcoin's writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses. None of the content on CaptainAltcoin is investment advice nor is it a replacement for advice from a certified financial planner. The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of


Sarah Wurfel
Sarah Wurfel

Sarah Wurfel works as a social media editor for CaptainAltcoin and specializes in the production of videos and video reports. She studied media and communication informatics. Sarah has been a big fan of the revolutionary potential of crypto currencies for years and accordingly also concentrated on the areas of IT security and cryptography in her studies.

We will be happy to hear your thoughts

Leave a reply