Coinbase receives nod to trade crypto in U.S

Joy Onuorah
Joy Onuorah

A prominent player in the cryptocurrency space, Coinbase, has received a significant nod from regulators, a move that has propelled its shares up by 5% in premarket trading.

The approval, granted by the National Futures Association, marks a pivotal moment for Coinbase, underscoring its unwavering dedication to maintaining a business that adheres to regulatory standards.

This achievement follows a legal challenge faced by Coinbase in June, when the U.S. Securities and Exchange Commission filed a lawsuit against the exchange, alleging unauthorized operations due to its failure to register as an official exchange.

Shifting the focus to the broader crypto landscape, data from research firm CCData reveals that trading volumes in crypto derivatives reached a staggering $1.85 trillion in July alone.

It’s worth noting that the derivatives market has emerged as a dominant force, constituting nearly 80% of the entire crypto market.

The allure of leveraged bets on futures and other derivatives often acts as a driving force behind the fluctuations witnessed across the wider crypto market.

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