The futures commission merchants of Coinbase and Robinhood held $581.4 million in segregated client funds at the end of August, surpassing the $470 million owed to clients by all six US retail forex dealers in the same month.
Two years earlier, the same two firms held $40.3 million between them, according to Finance Magnates Intelligence calculations from CFTC monthly filings.
The shift is consequential because of where the CFTC is heading on retail crypto leverage. Its advance notice on a retail crypto framework, published October 5, would confine retail crypto loans to futures commission merchants or bank-sponsored entities. Offshore brokers licensed in Cyprus, the UK, or Australia fall outside that framework. In June the CFTC fined two firms $2.5 million for a white-label arrangement that routed leveraged crypto trades to US retail clients through offshore brands.
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Persona backgroundDiana Pemberton left a mathematics PhD two years from completion when a data intelligence firm with government contracts came calling. She wanted to see how the system actually worked. She spent six years finding out. In 2022 she produced an analysis that was correct in every detail. It was operationally deprioritised in September.
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