Crypto exchange Backpack US has appointed former U.S. Securities and Exchange Commission (SEC) Acting Chairman Michael S. Piwowar to its board of directors, signaling a strategic move amidst evolving regulatory discussions surrounding digital assets.
- Michael S. Piwowar, a former SEC Commissioner and Acting Chairman, has joined the board of Backpack US.
- The appointment occurs as Backpack US expands its services, including a new platform for traditional and tokenized equities, and plans to increase its perpetuals trading offerings in the U.S.
- Piwowar’s tenure at the SEC included a skeptical approach to initial coin offerings (ICOs) and the rejection of a Bitcoin ETF proposal, while acknowledging Bitcoin was not a security.
- Backpack US President Mark Wetjen, a former CFTC Commissioner, highlighted the significance of the CFTC’s recent approval of regulated Bitcoin perpetual futures contracts.
- The company has also announced plans for a potential public offering, including a treasury backed by exchange tokens and an equity-linked staking model.
Piwowar stated that the U.S. regulatory landscape for digital assets is entering a “new phase” with increased focus on integrating innovation within established financial market structures through clear rules and oversight. He expressed optimism about the growing momentum towards regulatory clarity and durable market infrastructure.
During his service as an SEC commissioner from 2013 to 2018, including a period as acting chairman, Piwowar navigated the early stages of the cryptocurrency market’s interaction with securities regulation. While he and other commissioners reportedly viewed Bitcoin as a commodity rather than a security, the SEC under his leadership took a cautious stance on the burgeoning initial coin offering (ICO) market, issuing warnings about potential scams and emphasizing investor protection. A notable decision during his acting chairmanship was the rejection of the Winklevoss twins’ Bitcoin exchange-traded fund (ETF) application, which had been pending for several years.
Piwowar’s background includes significant experience in financial regulation, having served as chief economist for the U.S. Senate Committee on Banking, Housing, and Urban Affairs, where he was involved with the Dodd-Frank Act and the JOBS Act. He also contributed to economic analysis during the Global Financial Crisis as a senior economist on the President’s Council of Economic Advisers.
This appointment coincides with Backpack’s strategic expansion. The company recently launched a stock trading platform that supports both traditional and tokenized equities. Furthermore, Backpack US intends to broaden its perpetuals trading services within the United States, following the Commodity Futures Trading Commission’s (CFTC) recent decision to permit Kalshi to offer regulated Bitcoin perpetual futures contracts. Backpack currently provides regulated perpetuals trading in the European Union.
Mark Wetjen, President of Backpack US and a former CFTC Commissioner and acting chairman, characterized the CFTC’s approval of Bitcoin perpetuals as a “defining moment” for the market. He highlighted that services previously only available offshore are now moving towards U.S.-regulated exchanges, underscoring an evolving policy environment with a coordinated approach between the CFTC and the SEC.
Backpack has also outlined intentions for a public offering, including a proposed post-initial public offering (IPO) company treasury backed by 37.5% of its total 1 billion exchange token supply. Additionally, an equity-linked staking model is planned, which would allocate 20% of the company’s corporate equity to stakers.
Founded in 2023, Backpack secured $17 million in a Series A funding round in 2024, led by Placeholder VC, with participation from Robot Ventures, Wintermute, and Selini.
Potential Regulatory Precedent
The appointment of Michael S. Piwowar to Backpack US’s board could signal a significant development in the regulatory approach to digital assets in the United States. With a former high-ranking SEC official joining a company actively expanding into both tokenized and traditional securities trading, as well as regulated futures products, it suggests a move towards greater engagement with existing regulatory frameworks. This aligns with Piwowar’s own statements regarding the push for regulatory clarity and the integration of crypto into established financial structures. Such appointments may encourage other firms to seek counsel from individuals with deep regulatory experience, potentially leading to a more structured and compliance-focused industry. This could set a precedent for how crypto companies interact with regulatory bodies, emphasizing adherence to securities and commodities laws as a pathway for innovation and market access within the U.S.
Based on materials from : www.theblock.co