The U.S. Commodity Futures Trading Commission (CFTC) recently announced that some offshore cryptocurrency exchanges can re-enter the U.S. market under its Foreign Board of Trade (FBOT) framework, clearing the way for platforms including Binance and ByBit to serve U.S. investors again.
CFTC Acting Chair Caroline Pham issued a statement noting that after what she called an "unprecedented era of enforcement regulation," this move provides "the regulatory clarity needed for compliant onshore trading activities." She emphasized that U.S. traders will regain "the option to access the most liquid and active global digital asset markets."
Pham also stated that U.S. companies previously forced to move overseas will have the opportunity to return. She directly said: "The CFTC welcomes Americans who wish to trade safely and efficiently under a regulatory framework back to the domestic market, while also further opening the U.S. market to global investors. This is another key breakthrough on the path of cryptocurrency development."
Binance and ByBit may become the main winners
In recent years, offshore exchanges have gradually been excluded from the United States. Binance was forced to serve local users through its independent subsidiary Binance.US, but it has not yet covered all states. Nevertheless, Binance remains the world's largest cryptocurrency trading platform. According to CoinMarketCap data, its 24-hour trading volume exceeds $23 billion.
ByBit, ranked second in trading volume, is also an offshore platform, with a daily trading volume exceeding $4 billion. However, due to non-compliant KYC procedures, ByBit was banned from operating in the U.S. as early as 2021. The CFTC's new initiative is expected to eliminate these platforms' previous entry barriers, leading to further growth in trading volume.
White House policy drives CFTC reform
This policy adjustment is closely related to the Trump administration's cryptocurrency strategy. During the campaign, Trump promised the crypto community to weaken the strict regulation of agencies such as the SEC. Since taking office in January this year, he has signed several executive orders supporting the development of blockchain and digital assets. The GENIUS Stablecoin Act passed by Congress subsequently provided urgently needed regulatory guidance for the issuance of stablecoins.
Meanwhile, the Trump administration dissolved the Justice Department's crypto enforcement division and appointed several crypto-friendly officials to agencies such as the SEC. In July this year, the President's crypto task force also released a roadmap, proposing to make the U.S. the "global capital of crypto."
"Crypto Sprint" initiative officially launched
According to guidance from the White House, the CFTC launched the "Crypto Sprint" initiative earlier this month. The program is divided into two phases, aimed at quickly rolling out regulatory rules involving digital assets and cryptocurrencies. The CFTC has approved spot trading of digital assets on registered futures exchanges and established a "stakeholder engagement" mechanism to implement the 18 recommendations proposed by the President's crypto task force.
In another statement on August 21, Pham said: "The Trump administration has brought a new dawn to the crypto industry, and market participants should seize this historic opportunity to join the golden age of innovation."
She added: "Under the President's vision and leadership, the CFTC is actively coordinating with the SEC's crypto plan to promote immediate compliant trading of digital assets at the federal level."
