Today Coinbase Financial Markets announced it received approval as a Futures Commission Merchant (FCM), enabling it to list crypto derivatives directly. The approval is from the National Futures Association (NFA), a self-regulatory organization for the Commodity Futures Trading Commission (CFTC), where Coinbase first applied in 2021.
Coinbase was already up and running with futures through its 2022 acquisition of the FairX derivatives exchange. However, without a FCM approval it had to work through other FCMs as intermediaries, whereas now it can offer derivatives direct to consumers.
As it points out, around three quarters of crypto trading is in crypto derivatives rather than spot markets.
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