For years, global exchanges have operated in a gray area while servicing U.S. citizens, leading to significant financial penalties. One prominent platform, Binance, incurred billions in fines but managed a fresh start under President Biden’s administration. However, this era of restrictions is coming to an end, as pathways are being opened for U.S. citizens to access global exchanges, which may result in increased liquidity and appreciation for many altcoins.
U.S. Crypto Regulation Breakthrough
Eleanor Terrett recently shared significant news, promising a substantial shift for tokens not traded on U.S. exchanges and global platforms unable to serve U.S. customers. With a history of providing insider insights into U.S. crypto regulations, Terrett announced that the Commodity Futures Trading Commission (CFTC) is about to release registration guidelines for foreign exchanges. This development will clarify the process for these exchanges to enable Americans to trade on their platforms.
Acting Chair Caroline Pham views this as a strategic method to welcome back crypto giants that previously left due to regulations under the Biden administration. It aims to revive the legal framework that has been in place since the 1990s.
For U.S. investors, this means more legal access to global liquidity. For the crypto industry, it signifies clarity and represents a significant stride toward a “crypto” victory, reminiscent of the Trump administration’s efforts.
What Will Change?
The registration of major centralized exchanges in the U.S. will eliminate the advantage currently enjoyed by a limited number of domestic platforms. Due to the Biden administration’s stringent stance, Coinbase experienced significant growth, almost reaching monopoly status, covering various sectors such as NFTs, custody services, trading, options, futures, and institutional investments.
However, with a broader spectrum of competitors emerging in this new era, Coinbase might be impacted depending on the number of investors shifting to giants like Binance. From a broader perspective, the opening of centralized exchanges to the U.S. could transport liquidity globally, leading to substantial increases in liquidity for altcoins previously inaccessible to U.S. investors.
An expanded selection of platforms, coupled with an environment of increased competition, will likely attract more investors. This move, confirming America’s adoption of a crypto-friendly strategy, will foster long-term optimism within the industry.
