Why CFTC's Federal Option for Centralized Exchanges Just Got Harder to Ignore

An attacker drained about $6.36 billion from Binance in roughly 20 minutes this week, according to TRM Labs. The incident highlighted CFTC Chairman Michael Selig’s voluntary “federal option,” under which exchanges that register must keep customer money separate from their own and follow federal anti-fraud rules in exchange for offering US traders leveraged trading. Congress stalled the Clarity Act, which would have required exchange registration, leaving the CFTC unable to compel participation. Binance’s global exchange does not operate in the US, so the proposed rulebook would not have reached it. Binance says it will cover every loss, with about $3 billion already frozen, and that the attacker used a stolen login.