As the cryptocurrency regulatory environment in the US continues to progress, Coinbase, the country’s leading crypto exchange, has unveiled perpetual futures for American traders. The announcement came on Monday, further expanding the platform’s capabilities.
Traders can now engage in two types of perpetual futures contracts — nano Bitcoin Perpetual Futures and nano Ethereum Perpetual Futures. According to Coinbase’s statement, “Despite the global popularity of perpetual futures in the crypto sector, US traders have been left behind due to intricate regulatory scenarios. That changes today.”
The exchange further clarified that these new perp futures products come with up to 10x leverage and have a lifespan of 5 years, a departure from the standard monthly or quarterly expiration dates found in traditional futures products. Coinbase affirms this change provides traders with the flexibility to adopt more long-term strategies. A trading fee starting at 0.02% per contract applies.
This development aligns with the recent legislative progress in the US. The GENIUS Act, which sets forth a clear framework for stablecoins, was recently enacted. The Clarity Act, which provides a well-defined regulatory framework for cryptocurrencies, has also been passed by the US House of Representatives. This act outlines how the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) will oversee regulations.
The implementation of these legislative measures has boosted Bitcoin, Ether, and other prominent altcoins, fueling the ongoing market rally. Coinbase shares also achieved a new high, reaching over $437 last Friday, following a $100 billion market capitalization earlier in the week. However, the shares declined by 1.47% on Monday, closing at $413.63, as per Google Finance data.
Disclaimer: The Block is a majority-owned media outlet of Foresight Ventures as of November 2023. Foresight Ventures invests in other companies in the crypto space. Cryptocurrency exchange Bitget is an anchor LP for Foresight Ventures. The Block maintains its independence to provide unbiased, relevant, and timely information about the crypto industry. This article is for informational purposes only and should not be considered as legal, tax, investment, financial, or other advice.
