The U.S. Commodity Futures Trading Commission (CFTC) announced that offshore crypto exchanges can now register as Foreign Board of Trade (FBOT) to legally serve U.S. customers.
Since the 1990s, U.S. customers have been allowed to trade on registered offshore platforms under the FBOT framework. Acting Director Caroline Pham stated that this framework applies to all asset classes and welcomes U.S. investors to engage in safe and efficient trading under CFTC regulations.
This move signifies the opening of the U.S. market to the global stage and is also an important policy achievement for CFTC under President Trump.
Allowing offshore exchanges to enter the U.S. market is expected to enhance liquidity in the crypto market and break down regional barriers.
Currently, the world's largest exchange Binance cannot serve U.S. users directly but operates through an independent entity, Binance.US, which is not available in all states, limiting choices for U.S. users.
Related: CFTC seeks to allow registered exchanges to trade spot cryptocurrencies.
CFTC implements the Trump administration's crypto policy
CFTC is adjusting its crypto policy to achieve the goal of 'crypto sprint' and promote comprehensive crypto regulations.
President Trump has repeatedly expressed his desire to bring crypto companies back to the U.S. to establish leadership in the digital asset space.
From 2021 to 2024, due to the lack of clear regulations, many crypto companies exited the U.S. market, with the vast majority of trading volume flowing to offshore exchanges.
Attorney and Brickken CEO Edwin Mata pointed out that ambiguous regulations have fragmented the policy environment in the U.S., and clear regulations would help alleviate the legal burdens on crypto companies, allowing them to operate without fear of legal repercussions.
CFTC is collecting public feedback to formulate regulations that protect market participants without imposing excessive burdens on innovative projects.
Magazine: SEC's policy shift on crypto leaves key questions
