CFTC chief calls for US rules for offshore exchanges after Binance hack

CFTC Chair Michael Selig proposed an optional federal registration system to enforce cybersecurity standards on foreign crypto platforms following the Binance security breach.

By Divyansh Mishra, YourKhabri DeskNov 3, 2026, 05:14 AM UTC1 min readCFTCBinanceRegulationHack

Photo: Dclemens1971, CC BY 4.0, via Wikimedia Commons

Key takeaways

1CFTC Chair Michael Selig proposed an optional US registration pathway for foreign crypto exchanges.
2Selig noted that the Binance attack targeted platform security rather than underlying blockchain smart contracts.
3Authorities have frozen or seized $2.85bn of the roughly $6.3bn stolen in the Binance breach.

US Commodity Futures Trading Commission Chair Michael Selig said offshore crypto exchanges lack security safeguards equivalent to traditional American financial markets following a cyberattack on Binance, Wu Blockchain reported. Speaking in an interview, Selig called for an optional federal registration pathway that would require foreign platforms to meet strict cybersecurity standards to operate.

Selig explained that the attack did not target the underlying blockchain network or smart contracts directly. He added that the transparent nature of onchain transactions allows regulators and investigators to trace funds after an attack, helping authorities follow stolen assets across international borders despite gaps in platform oversight.

The regulatory push follows a security breach at Binance that resulted in approximately $6.3bn stolen, marking the largest recorded crypto heist in history, according to earlier YourKhabri reports. North Korean cyber actors opened roughly 12,000 digital wallets to distribute the funds, while authorities and cybersecurity firms have frozen or seized about $2.85bn of the total plunder.

The CFTC chief's remarks signal that US regulators are seeking broader authority to influence foreign crypto venues that handle substantial global trading volumes. Industry observers and exchange operators will watch whether Congress moves to draft formal rules creating the optional registration model for foreign crypto companies.

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Reported and edited by the YourKhabri desk under our editorial policy. Nothing here is investment advice.