Coinbase gets approval to offer crypto futures trading for US clients

Coinbase Global said it has secured approval to offer cryptocurrency futures to US retail customers, scoring a major regulatory win even as the crypto exchange battles a lawsuit from the Securities and Exchange Commission (SEC).

"This is a critical milestone that reaffirms our commitment to operate a regulated and compliant business," Coinbase said on Wednesday.

Shares of the company climbed 5.5 percent to $83.52 in premarket trading. The approval was granted by the National Futures Association (NFA), a self-regulatory organisation designated by the Commodity Futures Trading Commission (CFTC).

The company has openly criticised the SEC, which in a June lawsuit accused Coinbase of operating illegally because it had failed to register as an exchange.

CEO Brian Armstrong has also said more US crypto companies could move offshore due to a hostile regulatory environment and that SEC Chair Gary Gensler's enforcement-first approach could stifle innovation in the industry.

The NFA approval, which came nearly two years after Coinbase filed its application, could allow the company to expand into a largely untapped market.

The global derivatives market represents almost 80 percent of the entire crypto market, with leveraged bets on futures and other derivatives often at the root of volatility in the wider market.

In July, crypto derivatives trading volumes globally totalled about $1.85 trillion, according to research firm CCData.

The latest offerings will be from Coinbase Financial Markets, a unit of Coinbase.