The US Commodity Futures Trading Commission (CFTC), a regulatory body in the US, announced on Thursday that offshore cryptocurrency exchanges can now legally serve clients located in the US by registering under the Foreign Board of Trade (FBOT) framework.
Since the 1990s, US-based clients have been allowed to trade on registered offshore platforms through the FBOT registry, which applies to all asset classes, as stated by acting CFTC Director Caroline Pham said. Pham mentioned:
“Starting now, the CFTC welcomes back Americans who wish to trade efficiently and securely under CFTC regulations, thus opening US markets to the global community. This is yet another demonstration of how the CFTC will continue delivering victories for President Trump in our crypto initiative.”
Permiting offshore exchanges to cater to US residents could enhance liquidity in the cryptocurrency markets and eliminate the barriers that have kept crypto confined to specific regions.
Binance, the world’s leading exchange by trading volume, is currently not accessible to US residents. It operates within the country under a separate entity, Binance.US, which isn’t available in all states. This scenario confines US residents to a limited selection of crypto firms legally permitted to operate in the United States.
Related: CFTC aims to permit spot crypto trading on registered exchanges
CFTC continues the Trump administration’s crypto initiative
The CFTC is revising its cryptocurrency policies as part of the “crypto sprint,” an initiative aimed at implementing comprehensive crypto regulations in the US.
US President Donald Trump has consistently expressed his desire to attract crypto companies back to the nation to establish a leading position in digital assets.
The absence of clear regulations triggered an exodus of crypto firms from the US between 2021 and 2024, resulting in most of the crypto trading volume shifting to offshore platforms.
Edwin Mata, a lawyer and CEO of tokenization platform Brickken, informed Cointelegraph that vague regulations have led to a fragmented policy environment in the US.
The attorney shared with Cointelegraph that defined regulations would lessen the legal burdens on crypto firms, enabling them to operate in the US without the fear of legal consequences and regulatory actions.
The CFTC is gathering public input regarding its crypto policies to formulate regulations that will safeguard financial market participants while avoiding excessive burdens that might push innovative projects abroad.
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