tl;dr
Backpack Crypto Exchange, led by CEO Armani Ferrante, plans to launch in the U.S. later this year, aiming to reshape the crypto market with a focus on transparency. The company, which previously operated in regions with faster regulatory approvals, acquired FTX EU and is refunding former customers...
**Backpack Crypto Exchange Eyes U.S. Launch Amid Regulatory Shifts and Lessons from FTX**
Armani Ferrante, CEO of Backpack, is no stranger to the crypto world’s highs and lows. After watching the collapse of FTX—where he and colleagues lost funds—Ferrante vowed to build a platform rooted in transparency. Now, Backpack is poised to enter the U.S. market later this year, a move that could reshape the landscape for self-custodial wallets and exchange services.
Backpack, founded in 2022, initially targeted U.S. users with a self-custodial wallet but pivoted to regions with faster regulatory approvals, like Dubai, Japan, and Europe. Earlier this month, Cyprus registered Backpack to serve the EU under MiFID II, allowing perpetual futures trading. Yet, the U.S. remains Ferrante’s top priority. “This is the biggest digital asset market I know,” he said, emphasizing the country’s untapped potential despite regulatory hurdles.
**Transparency as a Lifeline**
The FTX debacle left a lasting mark on Ferrante. “People don’t care about proof of reserve until it’s too late,” he admitted, highlighting Backpack’s daily proof-of-reserve reports, which let users verify their holdings in real time. This commitment to transparency isn’t just a feature—it’s a safeguard. Ferrante argues that opaque systems, like those that failed FTX, are “dangerous and brittle.”
Backpack’s journey also includes acquiring FTX EU to salvage what remained of Sam Bankman-Fried’s empire. The company is now refunding former customers, a process set to conclude by midsummer after Cyprus’ financial regulator approved a £200,000 settlement.
**A Regulatory Crossroads**
Backpack’s U.S. expansion arrives as the crypto world grapples with shifting policies. Critics argue Biden’s administration drove businesses abroad with aggressive regulation, but Ferrante points to Trump’s pro-crypto stance as a turning point. SEC Chair Paul Atkins recently echoed skepticism about Biden’s approach, calling it “ineffective and injurious” to the U.S.
Yet, even under Biden, Backpack never left the U.S. market. Self-custodial wallets, which remain largely unregulated, allowed the company to stay rooted here. Today, Backpack employs more U.S. staff than anywhere else, with most wallets based domestically.
**A Growing Player in a Competitive Space**
With $170 billion in assets and a 24-hour trading volume of $74.68 million, Backpack is no small player. Bitcoin dominates its token distribution (46.03%), followed by Ethereum (16.64%). The exchange supports perpetual contracts across 40+ trading pairs, offering up to 10x leverage.
Ferrante sees the U.S. launch as a chance to capture market share quickly. “This is personal,” he said. “I believe the U.S. will gain the largest share of the market.”
**Market Moves and the Road Ahead**
As Backpack prepares for its U.S. debut, crypto markets are showing signs of life. Bitcoin rose 1.8% to $113,533.60, buoyed by a slight dip in the U.S. producer price index. Ethereum also gained 0.8%, trading at $4,344.65.
For Backpack, the stakes are high. Can it balance the U.S. market’s regulatory complexity with its commitment to transparency? And will investors trust a platform born from FTX’s ashes? The answer may define not just Backpack’s future, but the broader evolution of crypto in America.
What do you think? Is the U.S. ready for a new era of crypto innovation—or will regulatory challenges once again push innovation overseas?