Commission Staff Confirms the Categorization of Certain Crypto Asset Perpetuals as Foreign Futures and Issues No-Action Letter Regarding FCM Transfers of Customer Crypto Assets to Foreign Brokers as Margin

The CFTC confirmed that certain perpetual contracts offered by Coinbase Financial Markets, Inc. can be categorized as foreign futures. The agency issued a no-action letter allowing CFM to use customer-owned digital commodities as margin with foreign brokers. No penalties or fines were imposed in this case.

• •CFTC confirmed certain crypto perpetual contracts as foreign futures.
• •Coinbase Financial Markets, Inc. requested this interpretation.
• •No enforcement action will be taken against Coinbase for margin practices.
• •This decision supports the growth of crypto derivatives trading.

Coinbase Financial Markets, Inc. can enhance its service offerings by using customer assets as margin. This could lead to increased trading activity in crypto derivatives.