US regulators greenlight crypto perpetual futures — accumulate Coinbase
The US derivatives regulator has paved the way for crypto perpetual futures contracts to trade legally in the US, with Coinbase among the first platforms to offer them. This gives American crypto traders access to a popular trading tool that was previously only available on offshore exchanges.
Idea
The approval of perpetual futures in the US is a massive win for Coinbase, as it allows them to capture trading volume that previously went overseas. Perpetual contracts are the most popular trading instrument in crypto, driving huge amounts of revenue for exchanges that offer them. By becoming an early approved provider, Coinbase secures a major competitive advantage in the US market. This fundamental shift in their business potential should drive long-term confidence in the stock despite recent volatility in Bitcoin prices.