Coinbase received regulatory approval to offer global perpetual futures trading to US users, CEO Brian Armstrong announced on X on June 10 (local time). Armstrong stated the approval came after many years of work and positions Coinbase as the first to provide US users access to global liquidity in this product category. Perpetual futures are derivatives without expiration dates that allow leveraged trading and represent a significant portion of global digital asset trading volume, but US regulatory uncertainty has historically restricted their availability to American traders.
Coinbase CEO Announces Multi-Year Approval Process
Brian Armstrong posted on X that "Coinbase got approved to offer true global crypto perps in the US" and noted "this took many years of work, and we're the first to offer this global liquidity to US users." Armstrong explained that for many years crypto trading has been moving offshore due to the absence of clear rules in the United States, and perpetual futures were products traders wanted but were not permitted in the US.
Perpetual Futures Market and US Regulatory Restrictions
Perpetual futures are derivatives products that enable leveraged trading without expiration dates and account for a substantial portion of global digital asset market trading volume. US regulatory uncertainty has limited the provision of such products domestically. Armstrong stated that US investors have been participating in perpetual futures trading indirectly through offshore exchanges.
Armstrong Claims Offshore Platform Use by US Traders
Armstrong claimed that "probably about half of all perps volume was coming from Americans using offshore platforms via VPN and loose KYC" and described this as "an open secret in the industry." He characterized the situation as frustrating for US companies that comply with regulations, noting that some firms established overseas entities to circumvent regulatory constraints. Coinbase emphasized that this approval allows US users to access global liquidity within the US regulatory framework rather than through offshore exchanges.
Armstrong stated that "US users can now see liquidity connected to the global perpetual futures market" and assessed that "instead of the US market and overseas markets being separated, they will be connected as one." He emphasized that "Coinbase is one of the largest digital asset trading platforms in the US and the US is the world's largest capital market," adding that the company "gained an opportunity to build a strong global network effect centered on liquidity."
CFTC Chairman Credited for Approval
Armstrong credited CFTC Chairman Mike Sellig, stating he "understood the importance of US capital markets." Armstrong said Coinbase "will continue to improve the system in a compliant manner and work to provide the best trading environment."
FAQ
What did Coinbase receive approval for on June 10?
Coinbase received regulatory approval to offer global perpetual futures trading to US users, as announced by CEO Brian Armstrong on X on June 10 (local time).
Why were perpetual futures previously restricted in the US?
US regulatory uncertainty limited the provision of perpetual futures products domestically, leading digital asset trading to move offshore due to the absence of clear rules in the United States.
Who did Brian Armstrong credit for the approval?
Armstrong credited CFTC Chairman Mike Sellig for understanding the importance of US capital markets in the approval process.
