US just legalized the world's most popular crypto trading product — long Coinbase as it captures a brand-new revenue stream
The top US derivatives regulator just greenlit crypto perpetual futures contracts — the most popular crypto trading product worldwide — to be offered on American soil for the first time. Coinbase and Kalshi are among the first platforms cleared to launch them.
Idea
Perpetual futures contracts account for the vast majority of global crypto trading volume, but until now they've only been available on offshore exchanges like Binance. The CFTC just changed that, clearing the way for Coinbase — the largest US crypto platform — to offer them domestically. This is essentially opening a firehose of new trading fees and revenue for Coinbase, since American traders have been locked out of the most popular crypto product for years. Regulatory approvals of this magnitude tend to re-rate a company's stock because Wall Street analysts have to rebuild their revenue models from scratch. The timing also helps: Bitcoin ETF outflows have been heavy recently, which means sentiment is washed out and any positive catalyst could spark a sharp rebound in crypto-related stocks.