CFTC Opens Doors for Americans to Trade on Non-US Crypto Exchanges

The CFTC’s Division of Market Oversight issued an advisory on Thursday stating that U.S.-based users can now trade on non-U.S. crypto exchanges such as Binance.

The advisory clarifies the Foreign Board of Trade (FBOT) registration framework, which allows non-US exchanges to provide direct market access to US customers.

“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,” said Acting Chairman Caroline Pham.

CFTC’s Pivot to Crypto

The advisory addresses confusion caused by recent enforcement actions that departed from decades of CFTC precedent, clarifying that foreign exchanges can register as FBOTs rather than having to become Designated Contract Markets (DCMs).

Pham explicitly mentioned “a path back to US markets” for American crypto companies that were forced overseas due to regulatory uncertainty.

“By reaffirming the CFTC’s longstanding approach to provide US traders with choice and access to the deepest and most liquid global markets, with a wide range of products and asset classes, American companies that were forced to set up shop in foreign jurisdictions to facilitate crypto asset trading now have a path back to US markets.”

Many American firms were forced to relocate overseas during the Biden administration’s “war on crypto.”

Additionally, Americans have been able to trade on CFTC-registered foreign exchanges since the 1990s through the FBOT framework, which Pham called “the simplest and fastest solution.”

“Starting now, the CFTC welcomes back Americans that want to trade efficiently and safely under CFTC regulations, and opens up US markets to the rest of the world,” Pham said before adding:

“It’s just another example of how the CFTC will continue to deliver wins for President Trump as part of our crypto sprint.”

Enhancing Crypto Fraud Protection

Earlier this week, the CFTC announced that it was deploying Nasdaq’s advanced market surveillance technology to replace its decades-old legacy system while enhancing fraud detection across traditional and crypto derivatives markets.

“As our markets continue to evolve and integrate new technology, it’s critical that the CFTC stays ahead of the curve,” said Pham.

The new system provides automated alerts, cross-market analytics, and real-time monitoring across multiple asset classes, including commodities, currencies, and crypto assets.