Coinbase approved to offer cryptocurrency to retail customers in the US

The Coinbase Global, the largest US based cryptocurrency exchange, announced they received clearance from the National Future Association (NFA) to offer cryptocurrency to retail consumers. The NFA is a financial industry self-regulation body that carries a weight in the work of the Securities and Exchange Commission (SEC)

Previously, only institutional clients had access to these products. This regulatory win comes at a crucial time as Coinbase is currently facing a lawsuit from the Securities and Exchange Commission (SEC) over allegations of operating illegally. The cryptocurrency exchange’s CEO Brian Armstrong, has openly criticized the SEC and expressed concerns about the regulatory environment in the U.S. The NFA’s approval signifies a major milestone for Coinbase, demonstrating their commitment to operating a regulated and compliant business.

Once Coinbase published the news, company shares rose by 3%. Coinbase views this approval as a critical milestone and an opportunity to expand their offerings in a largely untapped market. The global derivatives market, comprises almost 80% of the entire crypto market. In July alone, crypto derivatives trading volumes globally reached approximately $1.85 trillion.

Why does it matter?
The NFA’s approval is seen as a major regulatory win for Coinbase amid a lawsuit from the Securities and Exchange Commission. Anyhow, it comes after nearly two years since Coinbase filed its application, highlighting the complexity and time required for the regulatory process.