Bybit pursuing U.S. market entry through broker partnership model rather than state-by-state regulatory licensing.
Regulation & Gov ·
Bybit is exploring U.S. market entry through partnerships with established brokers rather than pursuing state-by-state regulatory licensing, according to reporting. This approach sidesteps the fragmented compliance landscape that would otherwise require separate approvals across multiple jurisdictions, allowing the exchange to leverage existing broker infrastructure and regulatory frameworks already in place.
The strategy reflects a broader shift in how offshore crypto exchanges approach regulated markets. Rather than building independent compliance operations from scratch, Bybit would operate through partners holding established broker licenses, effectively distributing regulatory risk while maintaining access to U.S. retail and institutional users. This model has emerged as an alternative to the direct licensing route that requires navigating state money transmitter laws and federal oversight simultaneously.
Key details about which specific brokers Bybit is targeting, the scope of products available through such partnerships, and the timeline for execution remain unclear. The approach also leaves open questions about how custody, custody security, and compliance controls would function under a partnership structure, particularly given that custody and institutional risk management have become central considerations for Bybit's positioning.