Radhika Parashar
- The CFTC is looking to make the U.S. market more receptive of crypto services
- The FBOT registration has been part of the U.S. policy system for decades
- This registrations works for “all asset class” including crypto, the CFTC said
Amid its ongoing crypto regulatory overhaul, the U.S. has clarified the direction off-shore exchanges can take to step into its market. The Commodity Futures Trading Commission (CFTC), this week, said that off-shore crypto exchanges can register under its Foreign Board of Trade (FBOT) framework to make inroads into the country.
The FBOT registration has been part of the U.S. policy system for decades now. It essentially allowed U.S. nationals to trade multiple assets through registered platforms.
Caroline Pham, the acting director of the CFTC, has now clarified that the FBOT registrations work for “all asset class” — asserting that it does include digital assets alongside traditional ones.
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“Since the 1990s, Americans have been able to trade on non-U.S. exchanges that are registered with the CFTC as FBOTs. 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,” Pham said in her statement.
The clarification is part of the crypto sprint that the CFTC is undertaking to align with President Donald Trump’s aim of making the U.S. the crypto capital of the planet. It aims to review and amend existing market provisions to prepare to support the crypto ecosystem.
“Starting now, the CFTC welcomes back Americans that want to trade efficiently under CFTC regulations. This advisory is intended to promote regulatory clarity and access to markets,” Pham added.
Under former President Joe Biden, the U.S. lacked clarity on crypto rules. Owing to the discrepancies, agencies like the Securities and Exchange Commission (SEC) locked horns with a number of crypto exchanges, eventually driving some of them out of the U.S. looking for greener pastures.
As pointed out in a CoinTelegraph report, Binance is such an exchange. Touted among the largest crypto exchanges in the world, Binance is not accessible across the U.S. In order to cater to its American clients, the exchange operates “Binance U.S.” as a separate entity, which is not available in many states. Bittrex, Revoult, and CoinEx are other crypto platforms that winded down their crypto operations in the U.S. in 2023.
As part of the ongoing crypto sprint, agencies like the SEC and the CFTC are likely to continue adding clearer definition to the dos and don’ts for crypto companies to sustain in the American market. Just recently, the CFTC invited public feedback on spot crypto trading services via registered exchanges. The CFTC is also seeking public input on other crypto rules that will further structure the market.
