The US Commodity Futures Trading Commission (CFTC) announced on Thursday that American traders will now have access to foreign cryptocurrency exchanges, marking another regulatory breakthrough for the digital asset industry.
US Residents To Trade On Global Crypto Platforms
The CFTC’s Division of Market Oversight released an advisory regarding the foreign board of trade (FBOT) registration framework, which applies to non-US entities such as Binance, Bybit and OKX, legally established outside the United States.
This framework allows these foreign crypto exchanges to provide direct market access to US residents, enabling them to trade on their platforms. Importantly, this registration framework encompasses all markets, covering both traditional and digital assets. Acting Chair Caroline Pham emphasized the importance of this, stating:
Today’s FBOT advisory provides the regulatory clarity needed to legally onshore trading activity that was driven out of the United States due to the unprecedented regulation by enforcement approach of the past several years.
Pham noted that the CFTC aims to offer US traders a choice and access to deep and liquid global markets with a diverse range of products and asset classes, particularly beneficial for American companies that had previously relocated to foreign jurisdictions to facilitate crypto trading.
“Starting now, the CFTC welcomes back Americans who want to trade efficiently and safely under CFTC regulations, and opens up US markets to the rest of the world,” Pham added. She described this initiative as part of the ongoing efforts to deliver regulatory wins for the administration.
Strict Standards Ahead
The FBOT registration is not an automatic process, as highlighted by Fox journalist Eleanor Terret, who pointed out on social media X (formerly Twitter), that offshore crypto exchanges can only serve US customers if they are licensed in their home country and if the CFTC considers that regulatory regime to be comparable.
This means that while US traders will gain more legal access to global liquidity, foreign cryptocurrency exchanges must still meet specific regulatory standards to operate in the US market.
In 2019, platforms like Binance ceased operations for US users due to regulatory issues that worsened in 2023 with the resignation of former CEO Changpeng Zhao (CZ). Since then, Binance.US has launched for US residents.
Terret asserted that for the cryptocurrency industry, this development represents another step toward regulatory clarity and a significant achievement in the ongoing “crypto sprint” initiated during the Trump administration.
With the announcement, Binance Coin (BNB) jumped back above $876 after dropping below $830 earlier this week. This positions BNB’s price only 3% below all-time high levels of $899.
Featured image from DALL-E, chart from TradingView.com
