CFTC Chairman Michael Selig proposed voluntary federal registration for cryptocurrency exchanges in an Oct. 30 interview, after an Oct. 29 Binance breach reportedly involving about $6.3 billion in stolen cryptocurrency. The proposed oversight would cover cybersecurity, market manipulation, customer protections and custody, but the CFTC could not require every centralized exchange to register without more authority from Congress. The proposal remains preliminary, with public comments open until Dec. 14.
Sen. Cynthia Lummis argued that the stalled CLARITY Act would have helped firms freeze suspicious transactions at law enforcement’s request. Amanda Fischer of Better Markets disputed that claim, saying existing mechanisms already allowed voluntary freezes. Binance reportedly froze about $3 billion after the theft and promised to cover affected customer balances; neither the proposed registration route nor the stalled bill offers an immediate remedy for the stolen assets.
