CFTC Chair Urges Offshore Exchange Safeguards After Binance Breach

CFTC Chair Michael Selig is urging a voluntary federal registration route for offshore crypto exchanges after Binance’s security incident, arguing that the breach exposed gaps in safeguards common to U.S. financial markets. Under the option Selig described, an offshore exchange could seek federal registration and become subject to cybersecurity requirements comparable to those in regulated U.S. markets. Registration would be a choice for participating platforms, not a requirement imposed on every offshore exchange. Selig said the attack did not compromise the underlying blockchain.