Retail investors are running out of excess funds. During the pandemic, the US government provided a substantial amount of fiscal stimulus to residents, boosting not only the economy but also directing a significant amount of funds into the financial markets, inflating bubbles in small-cap stocks and cryptocurrencies.

Essentially, these licenses act as official permits that allow Binance, the largest cryptocurrency exchange globally, to operate within the country while following the rules set by the government.

A Solana-based decentralised futures exchange, Cypher Protocol, has taken action after an exploit that resulted in an estimated loss of around $1 million.