U.S. Traders Now Legally Clear to Tap Global Crypto Markets via CFTC Shift

The U.S. Commodity Futures Trading Commission (CFTC) has announced a new pathway for offshore crypto exchanges to legally serve U.S. clients through the Foreign Board of Trade (FBOT) registration framework. This regulatory shift, detailed in an advisory released on August 28, 2025, aims to restore access for American traders to global crypto markets and promote regulatory clarity following years of enforcement-based approaches under previous administrations. Acting CFTC Chair Caroline D. Pham emphasized that the move would enable U.S. residents to trade on offshore platforms while operating under CFTC regulations, fostering competition and access to deep liquidity pools [1].

The FBOT framework has been in place since the 1990s and applies to all asset classes, including digital assets. However, recent enforcement actions had created confusion, leading many crypto exchanges to operate outside the U.S. to avoid regulatory uncertainty. This period saw significant trading volumes shift to offshore platforms such as Binance, Bybit, and Bitget, according to crypto data provider CoinGecko. Binance, for example, facilitated $94 billion in derivatives volume in the past 24 hours, highlighting the dominance of non-U.S. exchanges in the sector [2].

Under the new guidance, non-U.S. exchanges can now register as FBOTs without needing to qualify as designated contract markets (DCMs), a requirement that had previously been enforced against several platforms. The CFTC clarified that this framework allows U.S. clients to engage in crypto trading on offshore platforms without violating U.S. regulations. This shift is a part of broader efforts by the CFTC to implement a “crypto sprint” initiative, aimed at revitalizing the U.S. crypto market and aligning with policy recommendations from the White House [3].

The CFTC’s decision has been welcomed by industry experts and legal professionals who have long advocated for clearer regulatory boundaries. Edwin Mata, CEO of tokenization platform Brickken, noted that ambiguous regulations have fragmented the U.S. policy landscape and burdened crypto companies with legal risks. The new guidance, he argued, reduces this uncertainty and allows firms to operate in the U.S. without fear of enforcement actions, potentially attracting innovative projects back to the country [1].

The regulatory shift also marks a departure from the approach taken by the former Securities and Exchange Commission (SEC) under President Joe Biden, which had focused on enforcement actions against unregistered exchanges. The CFTC’s advisory reaffirms its longstanding regulatory approach, which prioritizes market access and competition. Acting Chair Pham described the move as a win for President Trump and a step toward reestablishing U.S. leadership in digital asset markets [2].

In addition to restoring access to offshore exchanges for U.S. clients, the CFTC’s advisory is expected to increase liquidity in the crypto markets. By removing the silos that previously isolated U.S. traders from global platforms, the new framework could facilitate more efficient trading and reduce market fragmentation. The CFTC also emphasized its commitment to public feedback in shaping future regulations, ensuring that the evolving crypto landscape is managed with both investor protection and innovation in mind [4].

Source: [1] CFTC Clears Path to Allow US Citizens to Access Offshore Crypto Exchanges (https://cointelegraph.com/news/cftc-pathway-americans-trade-offshore-crypto-exchanges) [2] CFTC to Allow US Citizens to Trade on Binance, Other (https://finance.yahoo.com/news/cftc-allow-us-citizens-trade-174219319.html) [3] Acting Chairman Pham Announces FBOT Advisory to (https://www.cftc.gov/PressRoom/PressReleases/9111-25) [4] CFTC provides clarity on US access to foreign crypto (https://www.theblock.co/post/368689/cftc-provides-clarity-on-us-access-to-foreign-crypto-exchanges-after-being-driven-out)