The US Commodity Futures Trading Commission (CFTC), which serves as a financial overseer in the US, revealed on Thursday that overseas cryptocurrency exchanges now have a route to legally cater to clients in the US by registering under the Foreign Board of Trade (FBOT) structure.
Clients residing in the US have been permitted to trade on registered offshore platforms since the 1990s under the FBOT registry, which is applicable to all asset categories, stated acting CFTC Director Caroline Pham in a statement. Pham remarked:
“From this moment forward, the CFTC invites Americans who wish to trade effectively and securely under CFTC regulations, and broadens US markets to the global arena. This exemplifies how the CFTC will persist in achieving victories for President Trump as part of our crypto initiative.”
Permitting offshore exchanges to accommodate US residents could enhance liquidity within the cryptocurrency markets and dismantle the barriers that have kept crypto isolated within specific regions.
Binance, recognized as the largest exchange globally by trading volume, is presently inaccessible to US residents. It instead operates domestically through a distinct entity, Binance.US, which is not available in every state. This confines US residents to a limited selection of cryptocurrency firms permitted to operate within the United States.
Related: CFTC aims to permit spot crypto trading on registered exchanges
CFTC follows through on the Trump administration’s crypto initiative
The CFTC has been revamping its cryptocurrency policies as a component of the “crypto sprint,” a campaign to introduce comprehensive crypto regulations in the United States.
US President Donald Trump has consistently expressed his desire to repatriate cryptocurrency firms to the nation to establish dominance in digital assets.
The absence of definitive regulations has resulted in a migration of crypto enterprises from the US between 2021 and 2024, leading to the majority of crypto trading volume taking place on offshore platforms.
Edwin Mata, a lawyer and CEO of the tokenization platform Brickken, stated to Cointelegraph that indistinct regulations have fragmented the policy environment in the US.
The attorney conveyed to Cointelegraph that explicit regulations would alleviate the legal challenges faced by crypto firms, enabling them to operate within the US without fear of legal consequences and enforcement actions.
The CFTC is accepting public input for its crypto regulations to create rules that will shield financial market participants while not imposing undue strain that drives innovative projects overseas.
Magazine: SEC’s change in stance on crypto leaves significant questions unanswered
