Bitget CEO Says U.S. Launch Planned With or Without CLARITY Act
Bitget intends to enter the U.S. market irrespective of Congress’s decision on the CLARITY Act, as stated by CEO Gracy Chen.
Summary
- Bitget is planning its regulated U.S. launch regardless of the passage of the CLARITY Act.
- Chen mentioned that Bitget will pursue money-transmitter, derivatives, and broker-dealer approvals prior to offering services to U.S. users.
- As Bitget looks to collaborate with NYSE and Nasdaq, tokenized traditional assets are driving increasing activity.
The exchange is resurrecting its expansion efforts, which were previously halted after the implosion of FTX in 2022 and the ensuing regulatory scrutiny.
Chen emphasized her commitment to establishing a U.S. entity before services are launched, aiming for the necessary approvals for money-transmitter, derivatives, and broker-dealer activities.
Bitget rekindles U.S. expansion after a prolonged hiatus
Initially, Bitget contemplated launching a U.S. business in 2022, but later abandoned the plan due to increasing enforcement actions and regulatory challenges within the crypto sector. Chen confirmed the company’s decision to re-enter the market.
“With or without the Clarity Act, Bitget has already made a decision to enter the U.S. market,” she articulated.
The successful launch still hinges on receiving regulatory approvals. Chen affirmed that Bitget aims to secure licenses before commencing operations, intending to run through an independent U.S.-based entity, thus differentiating the new business from its offshore platform.
This strategy aligns with Bitget’s broader goals of acquiring local approvals in various markets. For instance, Bitget EU submitted a MiCAR application to Austria’s Financial Market Authority in June and has also made strides in markets like Argentina while ensuring a clear separation from restricted jurisdictions.
Tokenized equities integrated into Bitget’s U.S. strategy
Bitget’s aspirations in the U.S. go beyond traditional crypto trading. Chen mentioned that the company is in talks with the New York Stock Exchange and Nasdaq regarding the distribution of tokenized traditional assets. She described these exchanges as partners in transforming how stocks are integrated into blockchain systems across the financial landscape.
The discussions reflect the growing significance of tokenized equities within Bitget’s operations. Chen noted that traditional assets accounted for 20% to 30% of the exchange’s spot trading volume in the last quarter. Furthermore, 52% of users now own both crypto and stocks, with their tokenized stock offerings amassing over $100 million in assets.
As previously reported on crypto.news on July 16, Bitget recently integrated over 100 tokenized U.S. stocks into a unified margin platform alongside more than 370 eligible assets. Its Reality platform offers 1:1-backed tokenized stocks and ETFs, with select products also serving as trading collateral.
However, a U.S. launch may necessitate a different structure compared to products available in other regions. Regulatory concerns surrounding securities, broker-dealer qualifications, and derivatives oversight will shape the services Bitget can provide and how clients can access them. Chen emphasized the importance of obtaining these approvals prior to market entry.
Bitget’s entry not contingent on CLARITY uncertainties
While Chen acknowledged that the CLARITY Act could clarify the regulatory landscape, she expressed doubts about Congress passing the bill before the upcoming midterm elections. The legislation aims to establish a federal framework for digital assets and delineate oversight duties among agencies like the SEC and CFTC.
This week, the bill gained traction after the White House accepted proposed ethical constraints aimed at resolving one of the ongoing negotiation disputes. Nevertheless, as reported by crypto.news, the Senate still requires sufficient Democratic backing to meet the 60-vote threshold, and updated legislative text had not yet been publicly released as of July 22.
The House has passed an earlier version of the CLARITY Act, but the Senate must approve its own version before the legislation can proceed towards finalization. Any discrepancies between the two versions would need to be reconciled. Chen asserted that these uncertainties will not influence Bitget’s U.S. entry, although clearer federal regulations could streamline segments of the licensing process.
This position coincides with Bitget’s adjustments regarding access and licensing in other jurisdictions. On July 22, the exchange confirmed it is neither licensed nor monitored by the Monetary Authority of Singapore and that Singapore remains a restricted market. The company clarified that it does not target residents in Singapore while continuing its regulatory engagements elsewhere.
Its MiCAR application in Austria is still under review. Concurrently, the firm has broadened its regulated presence in other markets, including Argentina. Bitget’s U.S. strategy adheres to the same outlined approach: establish a local entity, secure required approvals, and only then launch its services.
While Bitget has not set a specific U.S. launch date, Chen’s statements indicate that the company is progressing past mere discussions and is now preparing for the licensing process. Although the CLARITY Act may reshape elements of the federal framework if enacted, Bitget’s expansion plans are no longer reliant on that outcome.