FTX Joins Coinbase, Kraken With US GAAP Audit Pass

The news comes as regulators around the world have moved to bring further oversight to the cryptocurrency industry.

article-image

Brett Harrison, President, FTX.US

share
  • FTX’s trading model differs from other cryptocurrency exchanges in that it allows for trading of tokenized derivatives
  • “It is something that we’ve been working on for a couple of months, and we are really excited about it,” said Brett Harrison, president of FTX.US

Both FTX and FTX.US have completed requirements to pass the US Generally Accepted Accounting Principles (GAAP) audit, which checks for a set of accounting principles, standards, and procedures in accordance with the Financial Accounting Standards Board (FASB). 

FTX CEO and founder Sam Bankman-Fried announced the news via Twitter Friday. 

Loading Tweet..

While this is a first for FTX, Coinbase and Kraken have historically passed US GAAP standards. FTX’s trading model differs from other cryptocurrency exchanges in that it allows for trading of tokenized derivatives.

“It is something that we’ve been working on for a couple of months, and we are really excited about it,” said Brett Harrison, president of FTX.US. “While we might not be the first crypto exchange to do so, we are excited about demonstrating to the crypto world and also to regulators in general that we are serious about transparency.” 

The GAAP comes as regulators around the world have moved to bring further oversight to the cryptocurrency industry. FTX does not see the possibility of greater regulation as a negative, Harrison said. 

“We have been in pretty constant contact with regulators, from a number of different agencies looking to form collaborative and cooperative relationships with them,” he said. “In general, FTX.US, especially is excited about, not just helping to shape the regulatory landscape for crypto, but also to get into other forms of regulated trading activity.” 

Token classification

One of the biggest issues affecting all US exchanges, Harrison explained, is the question of whether or not specific tokens should be classified as securities. Exchanges operating in the US are typically regulated by The Financial Crimes Enforcement Network under the money services business sector. 

“If a token is a security, then you cannot offer an unregistered security for trading to an unaccredited investor,” said Harrison. 

This is the central question in the ongoing Security and Exchange Commision vs Ripple lawsuit, Harrison pointed out. 

“The main subject of the Ripple case right now is trying to determine whether Ripple is actually a security, and we’re watching that closely to see what effect that’s going to have on the industry,” he said. 

FTX is also watching the SEC and Chairman Gary Gensler, who has said he plans on making cryptocurrency regulation a priority, for clarification about the classification of digital assets, Harrison said. 

“One thing that excited us coming out of the debates on the Senate floor is the appetite for education about crypto,” he said. “In our conversations with regulators, we are in general happy with and pleased with how much they know and are educating themselves on the industry and how much they want to work with us to put in fair and tough regulation, but also to allow for continued innovation in the space.”

Want more investor-focused content on digital assets? Join us September 13th and 14th for the Digital Asset Summit (DAS) in NYC. Use code ARTICLE for $75 off your ticket. Buy it now.

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates (1).png

Research

Aave’s revenues have doubled from April lows and are fast approaching all-time highs. With 35% of borrow interest coming from ETH and 55% from stablecoins, Aave is emerging as a powerful proxy as an ETH and stablecoin beta. As looping strategies accelerate growth and Horizon positions the protocol to ride the RWA wave, Aave is shaping up as one of DeFi’s most compelling multi-narrative plays.

article-image

Solana saw $78 million in REV for August

article-image

Lit Protocol’s Vincent is shifting agentic finance from toy demos to production rails

article-image

The new system aims to unify Europe’s fragmented tokenized asset settlement and cut cross-border costs

by Blockworks /
article-image

Tron slashed fees by 60% as Plasma looms, threatening its USDT moat

article-image

The acquisition adds evaluation-based funding to Kraken Pro, giving traders access to capital on performance

by Blockworks /
article-image

The deal merges real-time pricing data with on-chain credit ratings, aiming to boost institutional adoption of decentralized finance

by Blockworks /