Regulators Open Door for Binance as U.S. Crypto Market Rethinks Power Balance

USD-backed crypto exchanges are experiencing a surge in trading activity as U.S. traders regain influence in the market. Last month, platforms offering direct USD pairs and USD stablecoin trading, such as USDT and USDC, saw combined trading volumes reach $279 billion. This uptick has allowed major platforms like Crypto.com, Coinbase, and Kraken to maintain their leadership positions in the USD-backed exchange space, while smaller regulated platforms also benefit from increased interest. Despite regulatory limitations that have historically restricted U.S. traders from many global platforms, they still account for more than 10% of global exchange volume, underscoring their outsized market influence.

The recent regulatory developments surrounding U.S. access to offshore exchanges have introduced market uncertainty. The Commodity Futures Trading Commission (CFTC) has issued new guidance allowing foreign firms, including major crypto exchanges like Binance, to operate legally in the U.S. under its foreign board of trade registration framework. Acting CFTC Chair Caroline D. Pham emphasized that the move addresses regulatory ambiguity and aims to create a clear path for foreign exchanges to operate in the U.S. market. This development highlights the potential for U.S. traders to regain access to offshore exchanges, which have historically processed over $850 billion in combined volume this month—despite being inaccessible to American users.

The anticipated regulatory shift has already started to affect market sentiment. For instance, the price of the HYPE token, associated with the Hyperliquid exchange, declined as traders speculated that increased U.S. access to platforms like Binance could negatively impact decentralized exchange adoption. This response reveals the broader market's awareness of Binance's significant influence in the global exchange landscape, even in regions where it does not currently operate. The potential for U.S. market re-entry by major offshore exchanges could significantly disrupt the existing exchange ecosystem, reshaping the competitive landscape for USD-backed platforms.

The surge in USD-backed trading is also reflected in the performance of stablecoins such as USDC, which plays a central role in facilitating seamless transactions within the USD-backed exchange ecosystem. USDC, issued by the Centre Consortium and supported by cash reserves and U.S. Treasury bonds, has a current market capitalization of $72.14 billion. The stablecoin's 30-day trading volume reached $666.69 billion, demonstrating its widespread adoption across crypto exchanges and DeFi protocols. USDC's regulatory transparency and reserve disclosures have contributed to its growing appeal among traders and institutional participants, particularly as it continues to expand its presence on multiple blockchain networks.

The CFTC’s new guidance is expected to bring increased competition to the U.S. market, potentially altering the dynamics of trading activity and liquidity distribution. U.S. traders, long excluded from major offshore platforms like Binance, now face the possibility of accessing exchanges that offer a broader range of products, including perpetual futures and leveraged trading. This could shift the balance of market power and challenge existing platforms to enhance their offerings or regulatory compliance to retain users. Additionally, as U.S. exchanges adapt to the evolving regulatory environment, they may need to innovate in product design and customer experience to remain competitive in an increasingly globalized trading landscape.

Source: [1] USD-backed crypto exchanges see volume boost as US traders regain influence (https://www.theblock.co/post/369118/usd-backed-crypto-exchanges-see-volume-boost-as-us-traders-regain-influence) [2] USDC (https://www.coinbase.com/price/usdc) [3] USDT vs USDC - An in-depth Comparison between Tether and USD Coin (https://www.tokenmetrics.com/blog/usdt-vs-usdc) [4] Stablecoins Are Coming for Your Rewards Points (https://www.bloomberg.com/opinion/articles/2025-09-02/tether-usdc-stablecoins-are-coming-for-your-rewards-points) [5] CFTC to Allow US Citizens to Trade on Binance, Other ... (https://finance.yahoo.com/news/cftc-allow-us-citizens-trade-174219319.html)