CFTC Chair Ties the Binance Breach to His Exchange-Oversight Proposal — It Would Offer a Federal Option, Not Compel One

CFTC Chairman Michael Selig did not treat the Binance breach as just another offshore security failure. On CNBC’s Squawk on the Street Friday, he read the approximately $6.3 billion hot-wallet drain as evidence for a framework the agency proposed weeks earlier. The breach, Selig told CNBC , “proves our exact point in proposing regulations for crypto markets earlier this month.” That framing puts the Oct. 5 advanced notice at the center of a live argument about where crypto exchange oversight comes from when Congress does not supply it. The proposal itself is narrower than the moment around it. It is a request for comment on intent, not an enacted rule, and what it can reach depends entirely on authority the CFTC already has. What the proposal actually does The Oct.

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