Amidst growing regulatory challenges in the U.S., Coinbase, a prominent public cryptocurrency exchange, pushes forward with its plans to roll out bitcoin and ether futures contracts targeted at institutional investors.
In the midst of increasing regulatory scrutiny in the U.S., leading public cryptocurrency exchange, Coinbase, presses ahead with its introduction of futures contracts.
The announcement was made on June 1, stating that bitcoin and ether futures contracts will be available starting June 5 via its derivatives exchange, regulated by the Commodity Futures Trading Commission (CFTC).
Targeted towards institutional investors, Coinbase shared that the contracts will be sized to allow optimal market exposure management: 1 bitcoin and 10 ether per contract. The motivation behind this offering, as explained by the firm, is the feedback received after the launch of its nano bitcoin and ether futures contracts.
Coinbase reiterated its commitment to servicing institutional investors on its derivatives exchange by providing inventive solutions customized to their requirements. This move is seen as part of its larger strategy of continually adapting to the specific needs of its clients.
Earlier on May 2, Coinbase publicized its strategic decision to inaugurate a derivatives exchange in Bermuda, as part of its global expansion.
This development allows traders to speculate on the prices of bitcoin and ethereum via perpetual futures contracts, offering leverage up to 5x, thereby boosting exposure to potential price changes. Trades conducted on the platform will be settled in Circle’s USD Coin (USDC), providing a secure value representation.
Simultaneously, Coinbase continues to navigate the murky waters of regulatory clarity in the U.S., advocating for more explicit rules on digital asset trading.
The U.S. Securities and Exchange Commission (SEC), reacting to Coinbase’s call for clearer directives, indicated that the rulemaking process may take several years, suggesting no rush to hasten the process.
The SEC clarified its intent to employ enforcement actions to offer clarity on crypto regulation.
Yet, it underscored that any statements made by its chair, Gary Gensler, should not be misconstrued as formal guidance or official policy statements from the commission. The clear path forward for the regulatory landscape of digital assets in the U.S. remains to be seen.