The cryptocurrency industry has witnessed a groundbreaking development recently fostering its wider acceptance and adoption. This victory moment comes with the news of Coinbase, One of the major cryptocurrency exchange platforms, being granted the official authorization to introduce Bitcoin and Ethereum futures trading across the United States. The company received approval from the National Futures Trading (NFA) paving the way for increased institutional adoption and a more regulated trading of these assets.
Coinbase receiving the approval of future trading from the NFA for the two giant cryptocurrencies is a significant moment for both the company and the crypto industry. The National Futures Trading is a regulatory body overseen by the Commodity Futures Trading Commission (CFTC). This newly granted authorization to the company will bring Coinbase directly under the supervision of CFTC’s regulation safeguarding the interest of the investors against market manipulation.
Positive Implication on Coinbase and Cryptocurrency Industry
This recently received authorization is a gateway to a broader acceptance of cryptocurrency and freeing the citizens of the US from the previous exclusion from crypto futures trading. Future trading grants immense potential and flexibility to traders and investors allowing them to speculate on the price movement of both Bitcoin and Ethereum.
It also increases the cryptocurrency exchange platform’s participation in the market, granting access to a wider range of audience. The financial institutions that have been cautious about entering the crypto market due to their volatile nature have now received a greater reason to participate. Their involvement will have a significant impact on the crypto market with increased stability, liquidity, and reduced price volatility. They could also add to the expertise and resources required to foster innovation and risk management within the ecosystem.
The Chief Legal Officer, Paul Grewal, and the Coinbase team expressed their enthusiasm for the approval stating that this harmony was a result of several years of dedication and effort. He further said that the company has always channelized its effort towards safeguarding the customer and aligning with the regulatory framework. He agreed with how the regulatory environment encourages innovation and maintains market order while protecting the customers and investors. The Coinbase team describes this as a “watershed moment” celebrating this glorious achievement for the growing cryptocurrency industry.
The approval of Bitcoin and Ethereum as future trading on Coinbase is undoubtedly positive news for the crypto industry. This event not only showcases the evolution of digital assets but also the growing acceptance and adoption gradually replacing the traditional financial system. As digital assets have gained popularity over the years, there is still a certain percentage of individuals refraining from indulging in crypto investment due to market uncertainty and regulatory complexity. However, Coinbase’s step to provide a more secure and regulated future trading is a clear indication of the company’s intention to pave the way for increased understanding among the people eventually leading to their acceptance of cryptocurrencies as a good form of investment. This news comes as a ray of hope especially as the industry is in the midst of several legal battles involving companies like Binance, Kraken, and many more.
Disclaimer: This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
