Coinbase has thrown out a bizarre challenge to the SEC by registering with the CFTC as an FCM (Futures Commission Merchant).
FCM Coinbase
Registering with the commodities regulator CFTC, COINBASE has become the first crypto firm to receive gold-standard registration as a futures commission merchant. This has disappointed the SEC in a way because the SEC plays a major role in broker-dealer affairs and derivatives trading.
The crypto debate of SEC v CFTC
Both the SEC and the CFTC consider bitcoin a commodity, but crypto is an issue between them. Bitcoin maximalists don't consider bitcoin a crypto; the SEC has cashed in on the same argument. The SEC treats crypto as a security different from bitcoin. Coinbase is taking advantage of this controversy.
Ethereum's Battle Potential
Ethereum holds a strong position in the crypto world because of its smart contracts. The SEC considers ETH and its yields as securities, but now, with CFTC approval, Coinbase will use Ethereum in futures trading, due to which the SEC has to deal with CFTC first.
