In the midst of a prolonged crypto bear market, major crypto exchanges such as Binance and Coinbase are expanding into US stock trading, aiming to diversify revenue streams and evolve into comprehensive financial platforms. However, this pivot faces significant hurdles including high regulatory compliance costs, razor-thin commission margins, and the difficulty of migrating users from crypto-native to equity trading behavior.
Meanwhile, traditional brokerages like Charles Schwab, Interactive Brokers, and Robinhood have already shifted their business models away from transaction fees toward asset aggregation and interest income. The competitive battleground is now centered on user asset retention rather than trade volume. For crypto exchanges to gain meaningful traction in the US stock market, they must overcome structural differences in user expectations and navigate complex securities regulations.