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As cryptocurrency regulations become less strict under Trump, Deribit and other international companies are reevaluating their chances in the US market.
Deribit, the largest cryptocurrency options exchange in the world, traded $1.3 trillion last year and is thinking about entering the US market. This decision is influenced by President Donald Trump’s promise to turn the country into a global center for digital assets like bitcoin, according to the Financial Times. The Dubai-based company is joining other firms like OKX and Nexo in aiming for the US market, encouraged by Trump’s supportive policies towards cryptocurrency, such as dropping a lawsuit from the Securities and Exchange Commission and backing bitcoin mining. However, Deribit’s CEO, Luke Strykers, cautioned that providing derivatives in the US is still challenging due to regulatory issues.
A recent report from the Financial Times states that Deribit, the largest crypto options exchange in the world, is thinking about entering the US market. This decision is influenced by what it perceives as a supportive regulatory environment under President Donald Trump’s administration.
The exchange, located in Dubai and which processed $1.3 trillion in transactions last year, is currently “actively reevaluating potential opportunities” in the US, according to CEO Luke Strygers in an interview with the Financial Times.
He mentioned that “the recent shift towards a more favorable regulatory stance on crypto in the US” is a significant reason for this consideration.
Deribit’s possible plans to expand into the US coincide with reports that it is in advanced discussions to acquire the Coinbase platform.
A Bloomberg report from March 21 indicated that both Deribit and Coinbase have informed regulators in Dubai, where Deribit holds its license. If the acquisition goes ahead, the license will be transferred to Coinbase.
Other competitors, such as Kraken, are also looking to expand in the derivatives market, recently completing a $1.5 billion acquisition of NinjaTrader.
Cryptocurrency companies are focusing on expanding their operations within the United States.
Deribit is joining a growing number of cryptocurrency companies from Europe and Asia that are looking to expand into the U.S. market.
This decision follows a time of strict regulations during the Biden administration, which came after the collapse of FTX in late 2022.
During that time, the SEC and DOJ took strong actions against many companies, leading several to exit the U.S. market. However, there seems to be a shift in policy under Trump, who has promised to make the United States the leading country for cryptocurrency.
Since Trump’s election win, the SEC has dropped or paused over a dozen enforcement actions against cryptocurrency firms.
Moreover, the Justice Department has recently announced the closure of its cryptocurrency enforcement unit, indicating a more lenient stance towards the industry.
The Chief Executive Officer of Tether plans to adopt a careful strategy regarding expansion in the United States, with the intention of pursuing greater profitability.
This pragmatic strategy seems to be enhancing confidence within the industry.
For instance, OKX has revealed its intentions to set up a headquarters in San Jose, California, mere months after resolving a $504 million lawsuit with U.S. regulatory authorities.
On April 28, Nexo, which exited the U.S. market at the close of 2022 due to insufficient regulatory clarity, announced its plans to re-enter the U.S. market.
Additionally, prominent cryptocurrency entities such as Switzerland’s Wintermute and Dubai’s DWF Labs have expressed interest in pursuing expansion opportunities within the United States.
