Coinbase Passes CFTC FairX Law To Provide Future Trade To U.S. Consumers

Coinbase, a leading US cryptocurrency exchange, aims to enter the derivatives trading market by acquiring the FairX Derivatives Exchange, the third largest exchange in the world in terms of 24-hour trading volume.

FairX is a derivative contract exchange (DCM) regulated by the United States Commodity Exchange (CFTC). FairX entered the market in May 2021, but has a partnership with 18 players, including industry leaders TD Ameritrade and E * Trade.

Derivatives trading refers to the trading of various exogenous products related to the future value of the asset rather than the asset itself.

In a Jan. 13 statement, Coinbase described its plans to develop cryptocurrency products for U.S. consumers. “We want to make derivatives in the marketplace accessible to millions of sellers,” Coinbase said.

A retweet from the exchange said that including derivatives in its products would be beneficial for traders on the platform.

"The establishment of transparent commercial derivatives will allow individuals and businesses to become more involved in the cryptocurrency industry."

According to CoinGecko, cryptocurrency derivatives raised $ 137 billion in 24-hour trading volume from the 1st. That's more than the $ 55 billion volume of all cryptocurrency exchanges at the same time.

Referring to the importance of developing and manufacturing the liquid derivatives market, Coinbase said, "Improving industry transparency has a significant impact on all assets."

Major cryptocurrency exchanges include Binance, FTX, Bybit, and OKEx, all of which are retail competitors to Coinbase.

Controlling Coinbase's crypto derivatives trading activities could make it one of the best exchanges in the space, with 56 million active users and at least 8.8 million active trading users, according to BusinessofApps, a times per month.