This article addresses our US-regulated derivatives offering which is available to residents of the US and most countries in the European Economic Area ("EEA"). You can learn more about Coinbase's Derivatives products on the Derivatives help page. For US customers, derivatives balances are held with Coinbase Financial Markets (CFM), which is a CFTC registered futures commission merchant and a member of the National Futures Association. Spot balances are managed by Coinbase Inc. (CBI). Funds held with CBI do not benefit from the CFTC's customer protection regime.
In the EEA, this service is available only to eligible customers through Coinbase Financial Services Europe Ltd. (CBFSE). Access is subject to completion of CBFSE’s onboarding and verification requirements, including identity checks and the appropriateness and target market assessments applicable under the current CBFSE framework; if those requirements are not met, access may be refused, limited or withdrawn.. EEA Clients need to sign up for a Coinbase Luxembourg S.A. spot account in order to access CBFSE's offering.
Active traders who hold over 25 contracts in any crypto futures market at market close may receive a routine email from the CFTC requesting completion of the "Statement of Reporting Trader" Form 40.
Reaching a reporting level doesn’t guarantee receiving a Form 40 request, but traders who do receive a request should complete it promptly to avoid CFTC action. Note that this is a routine process and not indicative of wrongdoing, and different reporting thresholds apply to non-crypto contracts like gold, oil, and silver.
The CFTC email includes a 9-digit code, a portal link, a due date, and additional instructions. Example:
Instructions to submit a Form 40
These instructions are for individual retail traders who are trading on their own behalf with no parent body, subsidiary body, or outside controlling party. If you are part of an institution trading Coinbase derivatives, please reach out to your client services manager for guidance.
Visit https://portal.cftc.gov/ and accept the terms.
From the sign-in screen, select Request an account.
Complete the New User Request Form.
For Organization Type, select LTR (Large Trader).
For CFTC Code Number, enter the 9-digit code from the CFTC email.
For Submission Type, select Form 40.
Complete the remaining fields, enter the validation code, and select Submit.
Note: You’ll be asked to verify your phone number and email address via a verification code.
It will take two business days for the CFTC to verify and approve your account. After you’re approved, return to https://portal.cftc.gov/ and sign in with your credentials to fill out Form 40.
Item/ Question | Instructions | Image |
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1 | For Reporting Trader Type, select Natural Person, then fill out the rest of the required fields. You can skip the non-required fields. Your CFTC code number should be pre-filled |
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2-4 | Answer Yes to each question |
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5-6 | Answer No to 5 and 6. |
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7 | N/A | N/A |
8-13 | No information is required for 8-12. Answer No for 13. |
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14-16 | Answer No to 14-16 (We currently don’t offer commodity index trading or swaps). |
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17 | Select the following: • Sector: Financial Institutions and Investment Management • Subsector: Other Financial or Trading Entities - Individual Trader/ Investor |
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18 | Select the commodity group that applies to your trading based on the following contract types: • Any cryptocurrency futures contract: Select Other (Cryptocurrency) • Gold Futures, Silver Futures: Select Precious Metals • Nano Crude Oil Futures: Select Petroleum and Products Note: You can select more than one group. For Purpose, select Establishing Price Exposure. |
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Final | Check the authorization box. Complete your name and position (you can enter Retail trader for position). For Reporting Trader Name, enter your name again. Select Submit. |
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For more information and assistance, visit the CFTC’s FAQ page.
United States: Information provided is not investment advice. Funds held with Coinbase Inc. do not benefit from the CFTC’s customer protection regime. Access to the referenced financial products requires user eligibility, and may not be available in all jurisdictions. The risk of transacting in futures can be substantial and may not be suitable for everyone, possibly resulting in a loss of funds greater than the total amount of funds you have on deposit in your CFM account, together with any funds in your Coinbase Inc. account or any other accounts held with Coinbase affiliates. Leverage in futures trading can work for you or against you. The risk of loss using leverage can exceed your initial investment amount. Please review the CFM Futures Risk Disclosure Statement for more information. Coinbase Financial Markets makes no representation on the suitability of information provided or to a particular financial product.
Coinbase Financial Markets is a member of National Futures Association (NFA) and is subject to NFA's regulatory oversight and examinations. However, NFA does not have regulatory oversight authority over underlying or spot virtual currency products or transactions or virtual currency exchanges, custodians, or markets.
Assets held in your CFM futures account will be segregated from CFM’s own assets. All customer assets held by CFM will be subject to customer protection regulations of the CFTC, including CFTC Rule 1.20. In the unlikely event of CFM’s bankruptcy, your futures account is protected under CFTC regulations, including Part 190 rules, and specific provisions of the U.S. Bankruptcy Code.
Any funds transferred to your Coinbase Inc spot account won’t receive the preferential treatment afforded to funds held in a regulated futures account pursuant to CFTC's regulations and the U.S. Bankruptcy Code.
European Economic Area: The information contained on this page does not constitute marketing material or a solicitation to trade in the products or services described here.
Derivatives trading is available to eligible EEA customers through Coinbase Financial Services Europe Ltd. (CySEC License 374/19). In order to access derivatives, customers will need to pass through our standard assessment checks to determine their eligibility and suitability for this product.
Derivatives are complex instruments and come with a high risk of losing money rapidly due to leverage. Derivatives are complex instruments and are not suitable for most investors. You should consider whether derivatives are suitable for you, and seek independent professional advice if needed. The value of your product can go up and down, and your capital is at risk. You could lose all invested capital.
The products and services offered here may however not be available in your country, or may not be offered by Coinbase Financial Services Europe Ltd.
For eligible EEA customers, negative balance protection applies. Learn more here. If your deposit is in EUR, it will first be converted to USDC, and then USDC will be converted to USD.