TLDR
- The CFTC opened a pathway for offshore crypto exchanges to serve US clients by registering as Foreign Boards of Trade (FBOT)
- This is part of the CFTC’s “crypto sprint” initiative to overhaul regulations following Trump administration proposals
- US residents have been able to trade on registered offshore platforms since the 1990s under the FBOT framework
- The move could allow exchanges like Binance to directly serve US customers again after years of operating through separate entities
- CFTC Acting Chairman Caroline Pham says this welcomes back Americans who want to trade efficiently under CFTC regulations
CFTC Opens Path for Offshore Crypto Exchanges to Serve US Customers Through Foreign Board of Trade Registration.
The US Commodity Futures Trading Commission announced Thursday that offshore cryptocurrency exchanges can now legally serve American clients by registering under the Foreign Board of Trade framework. This development marks a key step in the CFTC’s ongoing “crypto sprint” to reform digital asset regulations.
JUST IN: 🇺🇸 CFTC to create pathway for US citizens to trade on offshore Bitcoin and crypto exchanges 👀 pic.twitter.com/Cu8l5X03oU
— Bitcoin Magazine (@BitcoinMagazine) August 28, 2025
Acting Chairman Caroline Pham explained that US-based clients have had the right to trade on registered offshore platforms since the 1990s under the FBOT registry. The framework applies to all asset classes, not just cryptocurrencies.
“Starting now, the CFTC welcomes back Americans who want to trade efficiently and safely under CFTC regulations, and opens up US markets to the rest of the world,” Pham stated. She described the move as another example of how the CFTC will deliver wins for President Trump as part of their crypto sprint.
The change could have major implications for major exchanges like Binance, the world’s largest exchange by trading volume. Binance is currently inaccessible to US residents and operates through a separate entity called Binance.US, which is not available in all states.
This separation has kept US residents in what some describe as a walled garden of crypto companies eligible to do business in the United States. The new pathway could potentially break down these barriers.
Breaking Down Regulatory Barriers
Edwin Mata, an attorney and CEO of tokenization platform Brickken, told Cointelegraph that ambiguous regulations have fragmented the policy landscape in the US. He explained that clear rules would reduce the legal burden on crypto companies.
The lack of clear regulations caused an exodus of crypto companies from the US between 2021 and 2024. This led to most crypto trading volume occurring on offshore exchanges.
President Trump has repeatedly stated his goal to bring crypto companies back to the country. He wants to establish US leadership in digital assets through clearer regulatory frameworks.
The CFTC advisory serves as a reminder rather than a policy change. It clarifies that firms eligible for FBOT status don’t need to register as US designated contract markets to let US clients access their trading services.
Current Market Impact
The agency has been receiving increased interest in FBOT registrations according to the statement. This suggests growing appetite among offshore exchanges to serve the US market again.
Foreign exchanges must be rigorously regulated in their home jurisdictions to qualify for FBOT status. This requirement ensures oversight while allowing US market access.
The CFTC is currently accepting public feedback on its crypto policies. The goal is to craft regulations that protect market participants without creating burdens that drive projects offshore.
Trump nominated former CFTC commissioner Brian Quintenz to chair the commission. However, the White House paused his confirmation process before the Senate’s summer recess.
Quintenz is expected to return to the confirmation process as soon as next week. If confirmed, he would be the only member of what is meant to be a five-person commission.
Republican Pham has indicated she plans to leave her position. The commission’s only Democrat, Kristin Johnson, is set to exit next week.
The CFTC’s crypto sprint represents a broader effort to establish comprehensive cryptocurrency regulations in the United States. Foreign exchanges registered as FBOTs can now directly handle US customers under this framework.
