TLDR
- CFTC opens Foreign Board of Trade registration for offshore crypto exchanges to serve US clients
- Part of Trump administration’s crypto sprint to reform digital asset regulations
- Could allow major exchanges like Binance to directly access US market again
- US traders have been able to use registered foreign exchanges since 1990s
- Move aims to increase crypto market liquidity and remove regional barriers
The US Commodity Futures Trading Commission issued new guidance Thursday allowing foreign cryptocurrency exchanges to serve American customers through Foreign Board of Trade registration. This development could reshape access to global crypto markets for US traders.
Acting Chairman Caroline Pham announced that offshore exchanges can now register under the FBOT framework to legally offer services to US residents. The registration path has existed since the 1990s for all asset classes but received renewed focus as part of the CFTC’s crypto sprint initiative.
“The CFTC welcomes back Americans who want to trade efficiently and safely under CFTC regulations,” Pham stated. She emphasized this opens US markets to global participants while maintaining regulatory oversight.
The announcement comes as President Trump pushes to bring crypto companies back to America. Many firms left the US between 2021 and 2024 due to regulatory uncertainty, causing most crypto trading volume to move offshore.
Major Exchanges Could Return to US Market
Binance, the world’s largest crypto exchange by volume, currently cannot serve US customers directly. Instead, it operates through Binance.US, a separate entity with limited state availability.
The new FBOT pathway could allow Binance and other major international exchanges to directly serve American traders again. This would break down barriers that have kept US residents using only domestic crypto platforms.
Foreign exchanges must meet strict regulatory requirements in their home countries to qualify for FBOT status. They don’t need to register as US designated contract markets, streamlining the approval process.
The CFTC has seen increased interest in FBOT registrations recently. The agency clarified that eligible firms can provide direct electronic trading access to US clients under this framework.
Regulatory Reform Under Trump Administration
Edwin Mata, CEO of tokenization platform Brickken, told industry media that unclear regulations previously fragmented the US crypto landscape. He said clear rules would reduce legal burdens on crypto companies operating domestically.
The crypto sprint represents broader efforts to establish comprehensive digital asset regulations. The CFTC is accepting public feedback to create rules that protect investors without driving innovation overseas.
Trump nominated former CFTC commissioner Brian Quintenz as permanent chairman. His confirmation process is expected to resume next week after being paused before summer recess.
If confirmed, Quintenz would lead a commission in transition. Republican Pham plans to leave her acting role, while Democrat Kristin Johnson exits next week.
The FBOT registration advisory doesn’t change existing policy but serves as a reminder to offshore exchanges. It clarifies the registration requirements and welcomes firms that previously felt pressured to avoid the US market.
Foreign crypto exchanges registered as FBOTs can now handle US customers directly under CFTC oversight, potentially increasing market access for American cryptocurrency traders.
