Coinbase chief executive officer Brian Armstrong stressed on the need for a “clear path to register” for the crypto market participants, possibly aimed at the US Securities and Exchange Commission (SEC). This comes after the Commodity Futures Trading Commission (CFTC) linked National Futures Association approved crypto futures trading for Coinbase Financial Markets. The Futures Commission Merchant (FCM) allows the exchange to offer crypto futures trading to United States based customers.
Earlier, the US SEC was taken to Court by Coinbase to address the issue of whether it was willing to give clarity on the rulemaking for the industry. With the latest CFTC license approval to offer regulated crypto derivatives, the onus is now on the agency to provide the much needed relief surrounding the regulatory fear, uncertainty and doubt (FUD). In this context, Armstrong stated that the market participants are willing to register if there is actually a clear path to do so.
Coinbase CEO: Major Moment
The CEO said the CFTC approval marks a huge milestone for the crypto market in terms of clarity. Meanwhile, the general market perception is that in the next 12 months, the US SEC could finally open doors for institutional Bitcoin exposure via spot ETFs.
“Major moment for crypto regulatory clarity in the U.S. This has been a multi-year process toward approval, and we’re excited to finally be launching federally regulated crypto derivatives with margin to our U.S. customers. When there is a clear path to register, we do.”
The back to back lawsuits filed against Coinbase and Binance in July 2023 remain the same. The US SEC had at the time alleged that since 2019, Coinbase has been engaging in an unregistered securities offering via its staking-as-a-service program.