The cryptocurrency market witnessed notable developments today, ranging from a surge in Avalanche network activity to fresh scrutiny of money laundering through US banks, alongside a landmark regulatory shift enabling offshore crypto exchanges to serve American clients.
Avalanche Records Strongest Transaction Growth of the Week
Avalanche has emerged as the fastest-growing blockchain of the week, recording a dramatic rise in transaction volumes. Data from analytics firm Nansen revealed that activity on the smart contract-focused network rose by 66% over the past seven days, reaching 11.9 million transactions across 181,300 active addresses.
The increase signals rising user adoption and engagement, strengthening the network’s utility and value proposition. Much of this momentum has been fuelled by fresh catalysts, including the US government’s adoption of Avalanche technology in select initiatives and renewed filings for exchange-traded funds linked to its native token AVAX.
Source: Nate Geraci
Industry observers suggest that these developments could bolster investor confidence and further consolidate Avalanche’s role as one of the leading platforms within the blockchain ecosystem.
US Banks Move Billions in Dirty Money
In a separate development, the US Financial Crimes Enforcement Network (FinCEN) issued an advisory that highlighted the role of American banks in facilitating large-scale money laundering for Chinese criminal networks. Between 2020 and 2024, US banks are estimated to have moved around 312 billion dollars for suspected money launderers linked to China.
The advisory drew on over 137,000 Bank Secrecy Act reports filed over the four-year period. According to the findings, Chinese money laundering groups have developed strong ties with Mexico-based drug cartels. Cartels seek ways to legitimise drug-related US dollar proceeds, while Chinese networks require US currency to bypass China’s strict capital controls.
The revelations are notable given frequent criticism directed at cryptocurrency for its role in illicit finance. By comparison, blockchain analytics firm Chainalysis estimated that illicit crypto transactions over the past five years amounted to 189 billion dollars – significantly lower than the sums attributed to the traditional banking sector.
CFTC Clears Path for Offshore Crypto Exchanges
The US Commodity Futures Trading Commission (CFTC) announced a significant regulatory step, opening a pathway for offshore cryptocurrency exchanges to legally provide services to American traders. The move comes under the Foreign Board of Trade (FBOT) framework, which has existed since the 1990s and applies to a wide range of asset classes.
Acting CFTC Director Caroline Pham confirmed that US-based clients can once again trade on approved offshore platforms provided they register under the FBOT regime. She stated that the measure is designed to enhance efficiency and safety for American traders while opening US markets to broader global participation.
Policy recommendations for the CFTC under the White House’s Strengthening American Leadership in Digital Financial Technology. Source: The White House
The decision could potentially boost liquidity across cryptocurrency markets by reducing fragmentation between regions and granting US investors wider access to international trading venues.
Implications for Crypto Adoption and Regulation
Today’s developments collectively highlight the dynamic nature of the cryptocurrency and financial regulation landscape. Avalanche’s growth underscores the rising adoption of scalable smart contract networks, while the FinCEN report shifts focus back to the traditional banking sector’s role in enabling illicit finance.
Meanwhile, the CFTC’s decision may mark the beginning of a more inclusive era for crypto trading in the United States, one that balances oversight with expanded market access. Together, these shifts suggest that the relationship between blockchain innovation, financial crime prevention, and regulation will remain a central theme in the months ahead.
