CFTC Clears Path To Allow US Citizens To Trade On Offshore Crypto Exchanges Like Binance, Bybit

The Commodity Futures Trading Commission (CFTC) issued an advisory on Thursday that foreign crypto firms that are willing to register with the agency under the Foreign Board of Trade (FBOT) framework can deal directly with U.S. customers. The move advances its push toward being friendlier to the crypto sector under the new Donald Trump administration.

“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 CFTC Acting Chairman Caroline Pham in a statement with the advisory.

“American companies that were forced to set up shop in foreign jurisdictions to facilitate crypto asset trading now have a path back to U.S. markets.”

Allowing foreign exchanges to serve American citizens can potentially improve liquidity in the crypto markets and remove the hurdles that have kept crypto trapped within regions.

Binance, the world’s largest exchange by trading volume, has been precluded from US markets in recent years. Under the terms of a historic $4.3 billion settlement in 2023, the exchange agreed to “completely exit” U.S. markets. It now operates in the country through a separate entity, Binance.US, which is not available in all states.

As such, the biggest crypto derivatives exchanges are based outside of the United States, with Binance, Bybit, and Bitget leading the charge, data from CoinGecko shows. This restricts US residents to only exchanges eligible to do business within the United States.

“Since the 1990s, Americans have been able to trade on non-U.S. exchanges that are registered with the CFTC as FBOTs. Starting now, the CFTC welcomes back Americans that want to trade efficiently and safely under CFTC regulations, and opens up U.S. markets to the rest of the world,” stated Pham.

She called the advisory “another example of how the CFTC will continue to deliver wins for President Trump as part of our crypto sprint.”

The financial regulator launched a ‘crypto sprint’ initiative earlier this month to focus on cryptocurrency spot trading and implement recommendations made in President Trump’s Working Group on Digital Asset Markets.