Coinbase files application to register as a futures commission merchant

The Bitcoin exchange Coinbase has filed with the NFA to register as a futures commission merchant (futures commission merchant, FCM). In the longer term, this move could enable the company to obtain a license from the CFTC.

Today, Coinbase filed with the NFA an application to register as an FCM → Futures Commission Merchant.

This is the next step to broaden our offerings and offer futures and derivatives trading on our platforms.

👉 Goal: Further grow the cryptoeconomy.

— Coinbase (@coinbase) September 15, 2021

“Today Coinbase filed with the NFA an application to register as an FCM. This is the next step to broaden our offerings and offer futures and derivatives trading on our platforms,” the statement said.

In the United States, firms seeking to offer derivatives to clients must obtain a CFTC license. To do so, they typically must be members of the self-regulatory organization NFA, which conducts registrations on behalf of the agency. 

The timeline for approval of the cryptocurrency exchange’s application is unclear. On the NFA site, Coinbase Financial Markets is listed as a “pending decision participant”.

The Bitcoin exchange Coinbase announced the acquisition of Skew, a provider of derivatives market data.

Earlier, Coinbase announced the offering of two private-bond issuances with a call option to redeem in 2028 and 2031, with a total nominal value of $1.5 billion.

Later, the company increased the offering size to $2 billion, citing strong market demand. Proceeds from the offering will be used for general corporate purposes, including the development of new products.

Earlier, the U.S. Securities and Exchange Commission warned Coinbase of potential enforcement in the event of launching USD Coin (USDC)-backed accounts, due to their treatment as securities.

Follow ForkLog’s bitcoin news in our Telegram — cryptocurrency news, prices and analysis.