Here’s what happened in crypto today
Need to know what happened in crypto today? Here is the latest news on daily trends and events impacting Bitcoin price, blockchain, DeFi, NFTs, Web3 and crypto regulation.
Coinbase is preparing to roll out cryptocurrency futures trading for institutional investors in the United States after winning approval from the NFA. Meanwhile, crypto miners in the United States have a new lobbying group aiming to dispel misconceptions about the industry’s sustainability, and Binance Connect is shutting down.
Coinbase wins NFA approval to offer Bitcoin, Ether futures in US
Cryptocurrency exchange Coinbase has obtained approval from the National Futures Association (NFA) to offer investments in crypto futures to eligible customers in the United States.
Announcing the news on Aug. 16, Coinbase stated that the company is now officially allowed to operate a Futures Commission Merchant (FCM) platform.
The approval enables Coinbase to introduce Bitcoin and Ether futures contracts through its Commodity Futures Trading Commission (CFTC)-regulated derivatives exchange.
“This is a critical milestone that reaffirms our commitment to operate a regulated and compliant business and be the most trusted and secure crypto-native platform for our customers,” Coinbase said in the statement.
According to a notice on Coinbase’s cryptocurrency futures web page, the new futures trading service will not be immediately available in the United States.
“U.S. regulated futures trading is coming soon. Sign up to join the waitlist and get early access,” the company said on the website.
In the announcement, Coinbase claimed that the global crypto derivatives market accounts for 75% of crypto trading volume worldwide. “The ability to trade using margin gives customers leverage and access to the crypto market with less upfront investment than traditional spot trading,” the firm added.
As previously reported, Coinbase officially announced plans to launch BTC and ETH futures trading for institutional investors in early June. Previously, Coinbase also planned to launch a derivatives exchange in Bermuda, marking a step in its global expansion strategy.
The news comes amid Coinbase’s ongoing legal battle against the U.S. Securities and Exchange Commission. The regulator filed a lawsuit against Coinbase in early June, alleging that the exchange violated local securities laws by selling unregistered securities.
Lobby group to dispel crypto mining misconceptions in DC, says founder
A new United States lobbying group has set the goal to dispel misconceptions about the crypto mining industry’s sustainability from policymakers.
The Digital Energy Council launched on Aug. 15 and will aim to advance policies encouragin the growth of digital asset mining and energy development.
It’s a “long overdue” unified voice for crypto miners in Washington D.C., DEC founder and president Thomas Mapes told Cointelegraph.
Its official first member association solely focused on the intersection of digital asset mining and energy ⚡️ policy at the federal level, look forward to working with digital asset and energy leaders check it out: https://t.co/kBFRkXHTNy https://t.co/kzNhtfxYZi
— Tom Mapes (@tommapes88) August 16, 2023
Mapes previously served with U.S. Energy Department and said it was during this stint that he began to see crypto mining firms in a different light — an essential part of the energy ecosystem providing energy to the grid during times of demand or purchasing excess energy that would otherwise go unused.
He explained many lawmakers have yet to see the industry the same way and “within the past year or so, you have pieces of legislation dropping against the industry.”
The association has several founding members which include crypto mining and energy firms, Mapes said and its membership and lobbying efforts will be — for now — focused on the U.S.
Binance Connect shutting down on August 16
Binance Connect, the regulated buy-and-sell crypto arm of the Binance exchange, will shut down on Aug. 16, Cointelegraph confirmed on Aug. 15 via an email with a Binance spokesperson.
The same day, BNB Chain-based decentralized exchange Biswap tweeted that Binance “has made a difficult decision to disable @Binance_Connect on 15 August due to its provider closing the supporting card payments service.”
Binance Connect launched on March 7, 2022, at the time known as Bifinity. The service acted as a fiat-to-crypto payments provider connecting crypto firms with the traditional finance system. At its launch, the platform supported 50 cryptocurrencies, along with fiat payment methods including Visa and Mastercard.
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