Key Takeaways
- The CFTC has clarified FBOT rules to give offshore exchanges a pathway to serve US customers.
- This move could expand legal access for Americans to trade cryptocurrencies on global platforms like Binance.
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The Commodity Futures Trading Commission’s (CFTC) Division of Market Oversight on Thursday issued an advisory clarifying its foreign board of trade (FBOT) registration framework, providing non-US exchanges with a clear process to register and legally serve American traders. The framework applies across asset classes, covering both traditional derivatives and digital asset markets.
Many exchanges have avoided operating in the US because of the uncertainty and risk of enforcement. With the guidance, instead of staying offshore or blocking American IP addresses, exchanges could register with the CFTC and operate in compliance with US rules.
For American traders, the advisory could mean legal access to a wider pool of global liquidity. US users will now gain transparent and regulated access to foreign trading platforms.
Acting Chairman Caroline Pham said the guidance is meant to provide the clarity needed to “legally onshore trading activity” that fled abroad during the years of regulation by enforcement. She stated that the FBOT model offers the simplest and fastest path for overseas exchanges to reach US traders.
“Starting now, the CFTC welcomes back Americans that want to trade efficiently and safely under CFTC regulations, and opens up U.S. markets to the rest of the world. It’s just another example of how the CFTC will continue to deliver wins for President Trump as part of our crypto sprint,” Pham said.
Under the Trump administration, digital asset oversight took a more structured turn. The CFTC and the Securities and Exchange Commission (SEC) have coordinated closely to lay out clearer guardrails for the industry.
Earlier this month, the federal commodity regulator launched a ‘crypto sprint’ initiative to implement recommendations from President Trump’s Working Group on Digital Asset Markets, focusing on areas such as guidance for crypto as commodities, decentralized finance interactions, and blockchain-based derivatives.
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