The global crypto landscape witnessed notable developments today, ranging from blockchain growth and government regulation to financial crime revelations. Avalanche emerged as the fastest-growing blockchain of the week, while US banks came under fire for laundering billions for Chinese networks. Meanwhile, regulators in Washington opened the door for offshore exchanges to serve American clients.
Avalanche Emerges as Fastest-Growing Blockchain
Avalanche recorded a sharp rise in transaction activity, outpacing other major blockchains in weekly growth. Data from analytics firm Nansen revealed that Avalanche transactions climbed more than 66% in the past week, reaching 11.9 million across 181,300 active addresses.
The network, known for its scalability and focus on smart contracts, continues to attract growing interest from both individual users and institutional players. Analysts suggest that recent catalysts, including the US government’s adoption of Avalanche technology and renewed exchange-traded fund filings linked to its AVAX token, have contributed to the momentum. The surge in activity highlights the platform’s expanding role in the broader blockchain ecosystem.
US Banks Linked to $312 Billion in Money Laundering
A report from the US Treasury Department’s Financial Crimes Enforcement Network (FinCEN) revealed that American banks facilitated $312 billion for suspected Chinese money laundering groups between 2020 and 2024. The watchdog analysed more than 137,000 Bank Secrecy Act reports to reach its findings.
The report outlined how Chinese money laundering networks are working closely with Mexico-based drug cartels. While cartels seek to move illicit US dollar proceeds, Chinese groups require US currency to circumvent strict capital control laws in their own country.
By comparison, Chainalysis estimates that total illicit cryptocurrency transactions over the last five years amounted to roughly $189 billion, significantly lower than the banking figures. Despite this, digital assets continue to face stronger criticism over their association with financial crime.
Regulators Open Door for Offshore Crypto Exchanges
The US Commodity Futures Trading Commission (CFTC) announced a significant regulatory shift by allowing offshore crypto exchanges to legally register under the Foreign Board of Trade (FBOT) framework. This move enables American clients to trade on such platforms while remaining under CFTC oversight.
Acting CFTC Director Caroline Pham highlighted that US investors have been permitted to trade on registered offshore platforms in other asset classes since the 1990s. The expansion of the framework to include digital assets is expected to enhance market efficiency and liquidity.
“From today, the CFTC welcomes back Americans who want to trade safely under our regulations, while opening US markets to the rest of the world,” Pham stated. The measure forms part of Washington’s broader push to bring crypto markets into mainstream financial regulation.
Impact on Crypto Markets
Industry experts suggest that these developments could strengthen the case for regulated growth within the sector. Avalanche’s rapid adoption underscores demand for efficient, high-capacity blockchains, while the FinCEN findings may push regulators to focus more scrutiny on traditional financial institutions rather than solely targeting digital assets.
Meanwhile, the CFTC’s decision to expand legal access to offshore exchanges may help reduce fragmentation in crypto markets and provide American investors with greater trading opportunities. Together, these shifts point to a landscape where both innovation and regulation are reshaping the future of digital finance.
