As the leading U.S.-based cryptocurrency exchange, Coinbase is often thought of as being regulated by the U.
Commodity Futures Trading Commission (CFTC). However, this is not entirely accurate. While Coinbase is a CFTC-regulated entity, the CFTC does not have direct regulatory oversight over Coinbase’s spot market activities.
Instead, Coinbase is regulated by state and federal financial authorities, including the New York State Department of Financial Services (NYDFS) and the Securities and Exchange Commission (SEC). Coinbase is also a member of FINRA and SIPC.
As such, it must follow certain rules and regulations designed to protect investors.
So while Coinbase is not directly regulated by the CFTC, it is still subject to regulation by other financial authorities. This ensures that Coinbase operates in a safe and transparent manner, providing investors with protection against fraud and other illegal activities.