The Coinbase Global Inc (NASDAQ: COIN) stock price has fallen 25.9% in the past month despite several positive announcements we shall cover below. For example, the crypto exchange recently received approval from the National Futures Association (NFA) to offer crypto futures trading in the United States.
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The exchange was allowed to act as a Futures Commission Merchant (FCM). AN FCM is allowed to buy or sell futures contracts, similar to what a market maker does in the stock market. However, the approval comes almost two years after Conibase applied to join the NFA in September 2021.
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According to the announcement, Coinbase will be the first crypto exchange licensed to offer regulated and leveraged crypto futures alongside traditional spot trading. However, all is not rosy for Coinbase since the company is still in a bitter lawsuit with the US Securities and Exchange Commission (SEC).
Another recent announcement was the company’s decision to acquire a stake in cryptocurrency operator Circle Internet Financial and shut down their jointly managed Centre Consortium, the operator of the stablecoin, USD Coin (USDC).
Coinbase noted that with the regulatory environment around stablecoins improving, a separate governance body like Centre is no longer needed. Circle will take complete control over USDC issuance and governance. Earlier, it was only the issuer of the stablecoin.
Stablecoins are crypto tokens whose value is pegged to a stable asset to protect from wild volatility. In the case of the USDC, the value is pegged to the dollar. The company is launching USDC on six new blockchains between September and October, bringing the multi-chain access of USDC up to 15.
The two companies will continue sharing the revenues generated from USDC interest accrual via a new model based on how much USDC is held on their platform.
Andrew Sears, Coinbase Financial Markets’s CEO, said: “Offering US investors access to secure and regulated crypto futures is key to unlocking growth and enabling broader participation in the crypto economy.”
CFTC Commissioner Christy Goldsmith Romero said at the time: “I have been vocal about the benefits of bringing appropriate crypto activities into the regulated space in order to protect customers, but in a way that supports oversight, accountability, transparency, and risk management.”
The Coinbase (COIN) stock price.
As investor sentiment shifted, the Coinbase (COIN) stock price has fallen 25.85% over the past month. What’s next?
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