Coinbase Receives CFTC Approval to Clear Derivatives In-House
(3 days ago) · 2 sources · Summarized by CryptoBipto
Coinbase has received approval from the Commodity Futures Trading Commission (CFTC) to operate its own derivatives clearing operation. This allows the exchange to handle the clearing of derivatives trades internally rather than relying on third-party clearinghouses.
WHY IT MATTERS
When you trade something like a futures contract, there is a middleman called a clearinghouse that makes sure both sides of the trade actually follow through. Think of it like an escrow service when buying a house — it holds the money and makes sure everyone does what they promised. Until now, Coinbase had to use outside companies for this step. With this CFTC approval, Coinbase says it can now handle that process itself. The CFTC is the U.S. government agency that oversees these types of financial products. For people new to crypto, this is an example of a major crypto company obtaining the same kind of regulatory permissions that traditional Wall Street firms hold, which reflects the ongoing integration of crypto services into the established financial system.
Read the full analysis with a CryptoBipto membership
Members can read the full analysis of every story, not just the headline.
Get startedSOURCES
- thedefiant.io
- cryptonews.com
RELATED
Learn the concepts behind this
Clear explanations of the subjects this article touches, with every term defined.
- How do you buy cryptocurrency safely?How crypto exchanges, verification, on-ramps and order types work, so you understand each step of a first purchase before you make one.
- How are institutions and regulators approaching crypto?What institutional adoption means in crypto, how spot ETFs and corporate treasury holdings work, and how regulation shapes what is available to ordinary users.