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CFTC chair proposes federal registration option for crypto exchanges following Binance hack

CFTC Chairman Michael Selig revealed a proposal to allow cryptocurrency exchanges to register directly under federal oversight, pointing to a massive $6.3 billion cyberattack on Binance as proof of the need for stronger market safeguards.

Portrait of CFTC Chairman Michael Selig in a suit and blue tie in front of the American flag.
Image: @Crypto_Briefing

The Commodity Futures Trading Commission is moving to offer cryptocurrency exchanges a pathway to register directly under a federal framework, agency Chairman Michael Selig announced during a CNBC interview. The proposal comes in the wake of a reported $6.3 billion hack targeting crypto exchange Binance.[1][2][3][5][10][11]

Selig told CNBC that the breach at Binance "proves our exact point" on the necessity of federal regulation, particularly for unregulated offshore platforms. Under the proposed pathway, platforms offering leveraged or margined retail trading could voluntarily opt into CFTC oversight while Congress continues working on broader statutory crypto legislation.[3][5][9][10]

The agency aims to use the registration framework to subject crypto trading venues to established market standards, stronger customer protections, and the same cybersecurity safeguards governing traditional U.S. financial markets to defend platforms against future cyberattacks.[3][4][5][12]

Key facts

  • CFTC Chairman Michael Selig announced that the agency wants to offer crypto exchanges a federal registration option.
  • Selig's proposal follows a reported $6.3 billion cyberattack targeting Binance.
  • Selig stated during a CNBC interview that the Binance hack "proves our exact point" regarding the need for exchange oversight.
  • The framework is designed to let platforms opt into CFTC oversight for leveraged or margined trading while Congress crafts broader crypto regulations.
  • Registered exchanges would be held to traditional U.S. market standards, customer protections, and cybersecurity safeguards against cyberattacks.

Sources 路 10 sources

  1. BT

    Bull Theory@BullTheoryioPost on X 路

    BREAKING: 馃嚭馃嚫 CFTC Chairman Michael Selig responds to the Binance hack, saying the CFTC wants to offer crypto exchanges a federal option to register with it. https://t.co/6t2OxQoL5Z

    Open source
  2. SI

    Solid Intel 馃摗@solidintel_xPost on X 路

    INTEL: CFTC proposes federal registration option for crypto exchanges, Chairman Selig says

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  3. CB

    Crypto Banter@crypto_banterPost on X 路

    馃毃CFTC CHAIRMAN ON BINANCE HACK: WE WANT TO OFFER EXCHANGES A FEDERAL OPTION TO REGISTER WITH THE CFTC! @ChairmanSelig said in a CNBC interview that the agency wants to give crypto exchanges a federal registration option in the wake of the @binance incident. The pathway would let platforms opt into CFTC oversight for leveraged or margined retail trading while Congress works on broader rules, bringing them under stronger customer protections and market standards.

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  4. WG

    Watcher.Guru@WatcherGuruPost on X 路

    JUST IN: 馃嚭馃嚫 CFTC proposes new regulations for crypto exchanges to strengthen security against cyberattacks.

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  5. DE

    Decrypt@DecryptMediaPost on X 路

    CFTC Chair Says Binance's $6.3B Hack "Proves Our Exact Point." Michael Selig told CNBC on Friday the agency wants to offer unregulated offshore exchanges a federal option to register with the CFTC, under the same cybersecurity safeguards as U.S. markets. https://t.co/fURR7ITaNz

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  6. CB

    Crypto BriefingArticle 路

    CFTC chair cites Binance鈥檚 $6.3 billion hack to push offshore exchange registration The Binance hack underscores the urgent need for robust cybersecurity measures and regulatory frameworks to protect the crypto industry. The post CFTC chair cites Binance鈥檚 $6.3 billion hack to push offshore exchange registration appeared first on Crypto Briefing .

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  7. BL

    BlockNews@blocknewsdotcomPost on X 路

    馃毃 JUST IN: 馃嚭馃嚫 CFTC Chair Mike Selig says the agency wants to offer cryptocurrency exchanges a FEDERAL REGISTRATION option following the reported $6.3 BILLION Binance hack! https://t.co/PPLbjxQweJ

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  8. BM

    Bitcoin Magazine@BitcoinMagazinePost on X 路

    JUST IN: 馃嚭馃嚫 CFTC Chair Mike Selig says the agency wants to offer crypto exchanges a federal registration option following the $6.3 billion Binance hack. 馃憖 https://t.co/WXcQTjkWWg

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  9. CB

    Crypto BriefingArticle 路

    CFTC proposes federal registration option for leveraged crypto exchanges The CFTC's proposal could pave the way for enhanced regulatory oversight, potentially boosting crypto market legitimacy and stability. The post CFTC proposes federal registration option for leveraged crypto exchanges appeared first on Crypto Briefing .

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  10. CB

    Crypto Briefing@Crypto_BriefingPost on X 路

    馃毃 JUST IN: CFTC Chairman Michael Selig says the agency wants to offer crypto exchanges a federal pathway to register with the CFTC following the $6.3B Binance hack. "We want to offer a federal option to these exchanges to come and register with the CFTC," Selig told CNBC. https://t.co/j8FPEHfsn7

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  11. AN

    Aggr News@AggrNewsPost on X 路

    CFTC CHAIRMAN MICHAEL SELIG ON BINANCE HACK: WE WANT TO OFFER A FEDERAL OPTION TO THESE EXCHANGES TO COME AND REGISTER WITH THE CFTC CAN GET THIS FIRST - CNBC INTERVIEW

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  12. CB

    Crypto Briefing@Crypto_BriefingPost on X 路

    馃彌锔廚EW: CFTC Chairman Michael Selig says the agency has proposed regulations allowing crypto exchanges to register federally, bringing established safeguards against cyberattacks and other risks. https://t.co/SrgZxn1Dsi

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