U.S. Traders Get Legal Path to Global Crypto Giants Like Binance

The U.S. Commodity Futures Trading Commission (CFTC) has issued an advisory that could significantly reshape the American cryptocurrency trading landscape by granting U.S. residents legal access to foreign exchanges such as Binance, Bybit, and OKX. The new Foreign Board of Trade (FBOT) registration framework provides clarity for non-U.S. exchanges seeking to offer trading services to Americans, aligning with a broader regulatory shift toward supporting crypto market access [1].

The advisory, issued by acting CFTC Chair Caroline Pham, emphasizes the agency’s commitment to providing U.S. traders with access to deep and liquid global markets. Pham stated that the framework aims to legally bring back trading activity that was driven overseas due to the enforcement-heavy approach of prior years [1]. The CFTC noted that this initiative aligns with its longstanding practice of enabling U.S. traders to access non-U.S. exchanges registered under the FBOT framework since the 1990s [4].

Under the new rules, foreign exchanges can offer direct market access to U.S. residents, provided they are fully licensed in their home jurisdictions and operate under regulatory regimes deemed comparable to U.S. standards. This means that, while U.S. traders gain access to global liquidity, foreign platforms must meet specific regulatory benchmarks to operate in the U.S. market [1]. For example, Binance, which had suspended operations for U.S. users in 2019 due to regulatory uncertainty, now has a potential legal pathway to reintegrate U.S. customers [2].

The advisory signals a significant departure from previous regulatory approaches, where foreign exchanges serving U.S. users were often treated as operating illegally. By removing this ambiguity, the CFTC is facilitating a more competitive trading environment. This shift is seen as part of a broader “crypto sprint” to modernize U.S. digital asset rules, aligning the country’s stance with more crypto-friendly jurisdictions such as Singapore and the European Union [3].

The move is expected to bring increased competition to major U.S. crypto platforms such as Coinbase and Kraken. Bloomberg noted that this regulatory shift could open the door for offshore exchanges to enter the U.S. market with a wider range of products and greater liquidity [3]. In response, OKX has already announced plans to establish a U.S. presence in San Jose, California [3]. Analysts suggest this development could drive trading volumes on major offshore platforms and contribute to the growth of Bitcoin and Ethereum liquidity in the near term [5].

The advisory is also seen as politically significant, reinforcing the U.S. position as a leader in digital asset innovation and regulatory clarity. Pham framed the rule as both pro-innovation and pro-trader, emphasizing the importance of giving American companies a path back to domestic markets [4]. The CFTC’s approach is expected to restore confidence among market participants and encourage further innovation and investment in the U.S. crypto sector [5].

Source:

[1] CFTC To US Traders: Foreign Crypto Exchanges Like ... (https://www.mitrade.com/insights/news/live-news/article-3-1079267-20250829)

[2] CFTC Shocks Markets: Americans May Soon Trade on ... (https://coindoo.com/cftc-shocks-markets-americans-may-soon-trade-on-binance-bybit-and-okx/)

[3] CFTC Says Offshore Crypto Firms Have Path to Bringing on ... (https://finance.yahoo.com/news/cftc-says-offshore-crypto-firms-193017428.html)

[4] CFTC: Registration for Exchanges Includes Digital Asset ... (https://www.pymnts.com/news/regulation/2025/cftc-says-registration-framework-for-non-us-exchanges-includes-digital-asset-markets/)

[5] CFTC allows American traders to access non-US crypto ... (https://www.cryptopolitan.com/cftc-opens-foreign-crypto-trading-to-us/)