The US Commodity Futures Trading Commission (CFTC) announced on Thursday that offshore crypto exchanges can now legally cater to US-based clients 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 within the FBOT registry, which applies to all asset classes, acting CFTC Director Caroline Pham stated. Pham remarked:
“From now on, the CFTC welcomes back Americans who wish to trade efficiently and safely under our regulations, opening US markets to the entire world. This is just another instance of how the CFTC will continue to deliver victories for President Trump as part of our crypto initiative.”
Permitting offshore exchanges to serve US residents could enhance liquidity in the crypto markets and eliminate the barriers that have confined crypto to specific regions.
Binance, the largest exchange by trading volume, is currently unavailable to US residents. Instead, it operates through a separate entity, Binance.US, which isn’t accessible in all states. This leaves US residents confined to a limited selection of crypto companies eligible to operate in the United States.
Related: CFTC seeks to allow spot crypto trading on registered exchanges
CFTC advances the Trump administration’s crypto initiative
The CFTC is revitalizing its crypto policies as part of the “crypto sprint,” a project aimed at establishing comprehensive crypto regulations in the US.
US President Donald Trump has emphasized his desire to attract crypto companies back to the country to secure leadership in digital assets.
The absence of clear regulations has led to a departure of crypto companies from the US between 2021 and 2024, resulting in the majority of crypto trading volume taking place on offshore exchanges.
Edwin Mata, an attorney and CEO of the tokenization platform Brickken, informed Cointelegraph that ambiguous regulations have created a fragmented policy landscape in the US.
The attorney stated that definitive rules would alleviate the legal burden on crypto companies, enabling them to operate within the US without fear of legal consequences and enforcement actions.
The CFTC is seeking public feedback on its crypto policies to develop regulations that safeguard market participants without imposing excessive burdens that push innovative projects overseas.
Magazine: SEC’s U-turn on crypto leaves key questions unanswered
