CFTC Opens Path for Global Crypto Exchanges to Serve U.S. Traders Again

Key Takeaways:

The CFTC issues a new advisory clarifying the Foreign Board of Trade (FBOT) registration for non-U.S. exchanges.
This move reopens the U.S. market to global crypto platforms like Binance, Bybit, and OKX under CFTC oversight.
Industry experts view it as a “Trump-era crypto win”, restoring clarity lost during years of enforcement-driven regulation.

The U.S. Commodity Futures Trading Commission (CFTC) has taken a decisive step that could reshape the future of digital asset trading. Acting Chair Caroline D. Pham announced on August 28, 2025, that the agency’s Division of Market Oversight (DMO) has released an advisory reaffirming the long-standing FBOT registration framework for non-U.S. exchanges. The move is aimed at clarifying regulatory requirements for foreign platforms that want to provide direct market access to U.S. traders.

FBOT Advisory Restores a Clear Path for Non-U.S. Exchanges

The Foreign Board of Trade (FBOT) registration program has been in existence since the 1990s enabling the United States traders to have access to some countries abroad. Although the framework was used historically in relation to commodities and derivatives, it also applies to digital assets.

But over the last few years, the regulatory uncertainty and aggressive enforcement blurred the line between FBOTs and Designated Contract Markets (DCMs), making it unclear to crypto exchanges. This confusion is sorted out in the new advisory which clarifies that exchanges not of the U.S. may still proceed to operate in the U.S. under the FBOT regime so long as they are registered.

Acting Chair Pham described the announcement as a reset for U.S. crypto market access, saying:

“Today’s FBOT advisory provides the regulatory clarity needed to legally onshore trading activity that was driven out of the United States due to unprecedented enforcement approaches of the past several years. Americans now have a path back to efficient, safe access under CFTC regulations.”

This could have sweeping implications for international crypto exchanges, many of which were forced to relocate operations overseas after years of legal pressure.

Why This Matters for Crypto Markets

For exchanges such as Binance, Bybit, and OKX, the FBOT route means they can re-engage with U.S. traders without creating costly, standalone entities in the country. Instead, they can operate under their foreign licenses, with CFTC approval ensuring compliance and investor protections.

This move:

Restores global liquidity access for U.S. traders.
Expands choices of trading venues, reducing reliance on smaller U.S.-only platforms.
Provides legal certainty after years of uncertainty under enforcement-first policies.

The declared move also coincides with the so-called Crypto Sprint program that was introduced to the market following the election of President Trump in late 2024, focusing on strict rules instead of flattening.

Enforcement Pressure Drove Firms Offshore

The Biden-Era Enforcement Landscape

The approach to digital assets pursued by the SEC and CFTC between 2021 and 2024 was one focused on enforcement. A number of large crypto firms, such as Uniswap Labs, Bybit, Jump Crypto, and FTX, were sued or investigated. In 2023, Binance and its founder Changpeng Zhao (CZ) were sued on the charges of operating without registration in DCM.

Last year, 2024, alone, the CFTC imposed penalties to the tune of $17.1 billion, with the large portion of these fines being imposed on crypto firms, pushing many companies offshore.

This created a regulatory vacuum: U.S. developers’ share of global open-source blockchain activity fell from 25% in 2021 to just 18% in 2025, according to industry reports.

Since late 2024, the CFTC has sought to reverse that trend. The FBOT advisory is one of the clearest signs yet of a pivot toward a pro-crypto regulatory climate.

Expert Reactions

Eleanor Terrett, a Fox Business reporter covering crypto policy, noted:

“For U.S. traders, this means renewed legal access to global liquidity. For the industry, it’s a long-overdue return to regulatory clarity. It’s also a major victory for the Trump administration’s crypto sprint initiative.”

Analysts also point out that this clarity could drive structural shifts in the industry:

Binance.US could eventually merge operations with Binance International.
Exchanges like OKX, which re-entered the U.S. earlier in 2025, now have a stronger compliance path.
Institutional investors may feel more confident engaging with exchanges under explicit CFTC oversight.

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