The U.S. Commodity Futures Trading Commission’s (CFTC) Division of Market Oversight has issued new guidance allowing American users to legally trade on non-U.S. exchanges, including Binance, by utilizing the Foreign Board of Trade (FBOT) registration framework.
Regulatory clarity for foreign exchanges
The advisory resolves uncertainty from recent enforcement actions that diverged from established CFTC precedent.
Now, foreign exchanges can register as FBOTs instead of being required to become Designated Contract Markets (DCMs) to serve U.S. clients.
Acting Chairman Caroline Pham commented:
“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.”
A path back for American firms
Pham noted that many American bitcoin companies were forced to relocate offshore amid regulatory ambiguity during the Biden administration.
She emphasized the restoration of market access, stating:
“American companies that were forced to set up shop in foreign jurisdictions to facilitate crypto asset trading now have a path back to US markets.”
The CFTC highlighted that U.S. traders have had access to FBOT-registered exchanges since the 1990s, calling it the “simplest and fastest solution.” Pham added:
“Starting now, the CFTC welcomes back Americans that want to trade efficiently and safely under CFTC regulations, and opens up US markets to the rest of the world.”
Upgrading market surveillance tools
Earlier in the week, the CFTC announced it is adopting Nasdaq’s market surveillance technology to bolster fraud detection across commodities, currencies, and bitcoin derivatives markets.
The new system features real-time monitoring and automated alerts designed to keep the regulator ahead as markets evolve.
