Regulators Clear the Path for U.S. Traders to Reconnect with Global Crypto Markets

The U.S. Commodity Futures Trading Commission (CFTC) has taken a significant step to restore access for U.S. traders to foreign cryptocurrency exchanges by reaffirming its Foreign Board of Trade (FBOT) registration framework. Acting Chair Caroline D. Pham announced the advisory on August 28, 2025, emphasizing that it provides regulatory clarity for non-U.S. exchanges seeking to serve U.S. clients. This framework, in place since the 1990s, allows U.S. traders to access global markets, including digital assets, through exchanges registered under the FBOT structure. The advisory was issued by the CFTC’s Division of Market Oversight and clarifies that non-U.S. exchanges do not need to register as U.S. Designated Contract Markets (DCMs) to offer trading services to Americans.

The advisory addresses growing confusion and regulatory uncertainty that had led to the departure of several major crypto exchanges from the U.S. market. Over the past several years, enforcement actions and inconsistent interpretations of CFTC policies had driven U.S. traders to offshore platforms. As a result, major exchanges such as Binance, Bybit, and OKX either restricted or ceased services for U.S. customers, citing compliance concerns. The CFTC’s renewed clarity on the FBOT framework aims to reverse this trend and reinvigorate U.S. market participation in global crypto trading. Pham noted that this move aligns with broader efforts to modernize the U.S. approach to digital assets and supports the administration’s “crypto sprint” initiative.

FBOT registration is not an automatic process; it requires that non-U.S. exchanges meet strict regulatory standards in their home jurisdictions. The CFTC has emphasized that these exchanges must operate under robust regulatory oversight comparable to U.S. standards. This ensures that while U.S. traders gain access to global liquidity, the regulatory environment remains consistent with domestic requirements. The advisory also clarifies that U.S. traders can legally engage in trading on these platforms without exposing themselves or the exchanges to unnecessary regulatory risks. This development is expected to benefit both U.S. traders and global exchanges by expanding market access and fostering a more competitive trading environment.

Market participants have welcomed the CFTC’s move as a step toward resolving regulatory ambiguity that had stifled innovation and discouraged investment. The advisory not only benefits traders by expanding the range of available platforms and products but also supports foreign exchanges that previously faced uncertainty in their ability to serve U.S. clients. The CFTC’s focus on providing clarity has been praised for its potential to stabilize the industry and encourage compliance-driven growth. With the regulatory fog now lifted, exchanges such as Binance, which had suspended services for U.S. residents in 2023, may consider re-entering the U.S. market under the FBOT framework.

The CFTC’s advisory aligns with broader efforts by the Trump administration to strengthen U.S. leadership in digital finance. Pham described the initiative as a “win” for the administration’s strategy to attract innovation and investment back to the United States. This decision follows earlier CFTC actions to streamline crypto regulations and comes amid a global shift in regulatory approaches, with jurisdictions such as Singapore and the European Union also adopting more flexible frameworks. The CFTC’s action is expected to bolster the U.S. position in the global crypto landscape by providing a stable and predictable regulatory environment for market participants.

Source: [1] Acting Chairman Pham Announces FBOT Advisory to Provide Regulatory Clarity for Non-U.S. Exchanges (https://www.cftc.gov/PressRoom/PressReleases/9111-25) [2] CFTC: Registration for Exchanges Includes Digital Asset Markets (https://www.pymnts.com/news/regulation/2025/cftc-says-registration-framework-for-non-us-exchanges-includes-digital-asset-markets/) [3] CFTC To US Traders: Foreign Crypto Exchanges Like Binance Can Serve Them Again (https://www.mitrade.com/insights/news/live-news/article-3-1079267-20250829) [4] CFTC Clears Path to Allow US Citizens to Access Offshore Crypto Exchanges (https://cointelegraph.com/news/cftc-pathway-americans-trade-offshore-crypto-exchanges) [5] CFTC: Crypto Firms That Left U.S. Can Open Doors Here as Foreign Boards of Trade (https://finance.yahoo.com/news/cftc-crypto-firms-left-u-184618231.html) [6] CFTC allows American traders to access non-U.S. crypto exchanges again (https://www.mitrade.com/insights/news/live-news/article-3-1078152-20250829) [7] CFTC: Crypto Firms That Left U.S. Can Open Doors Here as Foreign Boards of Trade (https://www.coindesk.com/policy/2025/08/28/cftc-crypto-firms-that-left-u-s-can-open-doors-here-as-foreign-boards-of-trade)