CFTC Chairman Michael Selig says the Binance hack supports his agency's plan to let offshore exchanges register under US cybersecurity safeguards. Estimated losses reached $6.3 billion. Full federal registration would still need action from Congress.
The Binance hack, with estimated losses of $6.3 billion, is now a regulatory talking point. Selig said it supports the plan of the CFTC to let offshore exchanges register under US cybersecurity safeguards.
Selig made the case in a CNBC interview on October 30, 2026, one day after the attack.
Attackers reportedly drain an estimated $6.3 billion in about 20 minutes
The hack took place on October 29, 2026, and attackers reportedly drained the funds in approximately 20 minutes. The estimated loss makes it the largest theft the crypto industry has recorded.
Before this, the record was a $1.5 billion theft linked to TraderTraitor, a North Korean hacking group.
Binance confirmed it will cover customer losses with company funds, reserving more than $6.34 billion for that purpose. Partners had also frozen around $3 billion of the stolen funds as of the time of the incident.
Selig pitches a voluntary registration pathway
Selig is using the incident to promote a voluntary federal registration pathway. Offshore exchanges that agree to US cybersecurity measures would be able to register with American regulators.
The framework targets exchanges that offer retail traders margin and leverage. Under the plan, registered platforms would be expected to meet cybersecurity standards and provide customer protections.
Selig acknowledged the limits of his agency's power. He noted that full federal registration would require action from Congress.
A proposed rulemaking already underway aims to establish the voluntary registration option by December 14, 2026. Selig was confirmed as CFTC Chair in December 2025 and has advocated a pro-innovation approach to crypto regulation.
Source: Crypto Briefing
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