Bitget is determined to penetrate the U.S. market regardless of Congress’s verdict on the CLARITY Act, as highlighted by CEO Gracy Chen.
Summary
- Bitget is gearing up for a regulated U.S. launch, irrespective of whether the CLARITY Act is passed.
- Chen noted that Bitget will seek approvals for money-transmitter, derivatives, and broker-dealer functions prior to offering services to U.S. users.
- As Bitget aims to collaborate with NYSE and Nasdaq, there’s growing activity surrounding tokenized traditional assets.
The exchange is reigniting its expansion initiatives, which had been paused following the fallout from FTX in 2022 and the related regulatory scrutiny.
Chen reiterated her commitment to forming a U.S. entity before services are launched, targeting the necessary approvals for money-transmitter, derivatives, and broker-dealer activities.
Bitget revives U.S. expansion after a lengthy break
Initially, Bitget considered launching a U.S. venture in 2022 but later shelved the plan due to intensified enforcement actions and regulatory hurdles in the crypto sector. Chen confirmed the company’s intent to re-enter the market.
“Whether or not the Clarity Act passes, Bitget has made the decision to pursue entry into the U.S. market,” she stated.
The successful launch still depends on receiving regulatory approvals. Chen confirmed that Bitget’s strategy involves securing licenses before launching operations, with an independent U.S.-based entity planned to keep the new business distinct from its offshore platform.
This approach is consistent with Bitget’s broader objectives of obtaining local approvals in various markets. For instance, Bitget EU already submitted a MiCAR application to Austria’s Financial Market Authority in June and is making progress in markets like Argentina while ensuring a clear separation from restricted areas.
Tokenized equities incorporated into Bitget’s U.S. strategy
Bitget’s ambitions in the U.S. extend beyond conventional crypto trading. Chen mentioned ongoing discussions with the New York Stock Exchange and Nasdaq regarding the distribution of tokenized traditional assets. She characterized these exchanges as partners in revolutionizing stock integration within blockchain ecosystems throughout the financial landscape.
The discussions highlight the rising importance of tokenized equities in Bitget’s operations. Chen remarked that traditional assets contributed to 20% to 30% of the exchange’s spot trading volume in the last quarter. Moreover, 52% of users now own both crypto and stocks, with their tokenized stock offerings accumulating over $100 million in assets.
As previously discussed on crypto.news on July 16, Bitget recently integrated over 100 tokenized U.S. stocks into a unified margin platform, now offering more than 370 eligible assets. Its Reality platform features 1:1-backed tokenized stocks and ETFs, with selected products also available as trading collateral.
Nonetheless, a U.S. launch may necessitate a different framework compared to products in other regions. Regulatory concerns about securities, broker-dealer qualifications, and derivatives oversight will influence the services Bitget can offer and how clients access them. Chen stressed the significance of obtaining these approvals before entering the market.
Bitget’s entry independent of CLARITY uncertainties
While Chen acknowledged that the CLARITY Act could elucidate the regulatory framework, she expressed skepticism about Congress passing the bill before the forthcoming midterm elections. The legislation aims to create a federal structure for digital assets and clarify supervisory responsibilities among agencies such as the SEC and CFTC.
This week, the bill gained momentum after the White House accepted proposed ethical constraints intended to resolve one of the ongoing negotiation disputes. However, as reported by crypto.news, the Senate requires sufficient Democratic support to reach the 60-vote threshold, and updated legislative text had not yet been publicly released as of July 22.
The House has approved an earlier version of the CLARITY Act, but the Senate needs to endorse its own version before the legislation can progress towards finalization. Any discrepancies between the versions will need reconciliation. Chen maintained that these uncertainties will not deter Bitget’s U.S. entry, although clearer federal regulations could simplify some aspects of the licensing process.
This stance aligns with Bitget’s adjustments regarding access and licensing in other regions. On July 22, the exchange confirmed it is neither licensed nor supervised 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 regulatory engagements elsewhere.
Its MiCAR application in Austria is still pending review. Simultaneously, the firm has expanded its regulated presence in other markets, including Argentina. Bitget’s U.S. strategy adheres to the same outlined approach: establishing a local entity, obtaining necessary approvals, and only then launching services.
Although Bitget has not specified a U.S. launch date, Chen’s comments suggest that the company is moving beyond discussions and is now preparing for the licensing process. While the CLARITY Act might reshape certain elements of the federal framework if enacted, Bitget’s expansion plans are no longer dependent on that outcome.
