The US Commodity Futures Trading Commission (CFTC), a US financial regulator, announced on Thursday that offshore cryptocurrency exchanges now have a legal pathway to serve clients based in the United States by registering under the Foreign Board of Trade (FBOT) framework.
Clients in the US have had the option to trade on registered offshore platforms since the 1990s through the FBOT registry, which applies to all asset classes, as noted by acting CFTC Director Caroline Pham in a statement. Pham stated:
“From now on, the CFTC welcomes back Americans interested in trading efficiently and safely under CFTC regulations, thereby opening US markets to the rest of the globe. This exemplifies how the CFTC will consistently deliver victories for President Trump as part of our crypto sprint.”
Enabling offshore exchanges to cater to US residents could boost liquidity in the cryptocurrency markets and dismantle the barriers that have kept crypto confined to specific regions.
Binance, the largest exchange globally by trading volume, is currently not accessible to US residents. Instead, it operates through a separate entity, Binance.US, which is not available in all states. This situation places US residents in a constrained environment of crypto companies eligible to operate within the United States.
Related: CFTC aims to allow spot crypto trading on registered exchanges
CFTC advances the Trump administration’s crypto agenda
The CFTC is reforming its crypto policies as part of the “crypto sprint,” an initiative to develop comprehensive cryptocurrency regulations in the United States.
US President Donald Trump has consistently expressed a desire to bring crypto companies back to the country to establish dominance in digital assets.
The absence of clear regulations led to a departure of crypto companies from the US between 2021 and 2024, resulting in most of the crypto trading volume occurring on offshore exchanges.
Edwin Mata, an attorney and CEO of tokenization platform Brickken, informed Cointelegraph that unclear regulations have created a fragmented policy landscape in the United States.
The attorney indicated that establishing clear guidelines would alleviate the legal burden on crypto companies, enabling them to operate in the US without concerns of legal repercussions and enforcement-based regulation.
The CFTC is seeking public input on its crypto policies to formulate regulations that ensure the protection of financial market participants without imposing excessive burdens that could push innovative projects offshore.
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