Nearly two years after submitting their initial application, Coinbase, a prominent cryptocurrency exchange listed as “COIN,” has been given the go-ahead to trade crypto futures in the United States. The National Futures Association (NFA) gave the Coinbase Financial Markets division permission to operate as a Futures Commission Merchant (FCM), it was disclosed on Wednesday. The ability to trade futures contracts is granted to FCMs, who operate similarly to market makers.

Since September 2021, Coinbase’s application has been on file with the NFA, a self-regulatory organization recognized by the Commodity Futures Trading Commission (CFTC).

With this seal of approval, Coinbase will become the first crypto-focused platform in the United States to provide both regulated leveraged crypto futures and standard spot trading. According to Andrew Sears, the CEO of Coinbase Financial Markets, this action is crucial for accelerating growth and enhancing investor access to the cryptocurrency market in the United States.

The CFTC has previously authorized Cboe Digital, a division of Cboe Global Markets, to offer margined futures contracts for bitcoin and ether.

CFTC Commissioner Christy Goldsmith Romero emphasized the significance of such breakthroughs by stating the necessity of integrating pertinent crypto functionalities inside a regulated framework and stressing client protection, accountability, and openness.

Following this information, COIN’s shares on Nasdaq experienced a sharp increase, increasing more than 5% to $83.20 during pre-market sessions.