CFTC: Offshore Crypto Firms Have Path to US Users

(Bloomberg) — The Commodity Futures Trading Commission has taken a step that could make it easier for some overseas crypto exchanges to legally offer derivatives to American traders, a move that could reopen a path back into the US for firms like Binance Holdings Ltd.

The agency issued an advisory clarifying how foreign platforms can register as so-called foreign boards of trade, provided they are fully licensed to offer derivatives in regulatory regimes that the CFTC deems comparable to US levels of oversight.

“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,” acting CFTC Chairman Caroline Pham said in a statement accompanying the advisory announcement.

Pham’s statement and the advisory came on the same day that the US started publishing key economic data on the blockchain, highlighting the extent to which the Trump administration has sought to publicly embrace the industry after the crackdown of the Biden years.

Open Posture

While the advisory largely reiterates existing policy, it signals a potentially more open posture toward offshore exchanges based in jurisdictions with regulatory frameworks perceived as credible by the US.

Such reviews would be done on a case-by-base basis, and a prior determination that a jurisdiction meets US standards could streamline the process, according to a former CFTC attorney who asked not to be identified discussing experiences working with the agency.

Earlier this year, crypto exchange OKX said it would be launching operations in the US and establishing a presence in San Jose, California.

The opportunity is highly attractive: North America is the largest cryptocurrency market globally, with about $1.3 trillion in on-chain value received between July 2023 and June 2024. That figure represents about 22.5% of global activity, according to data compiled by crypto researcher Chainalysis.

A meaningful shift to allowing US users onto a wider range of platforms would bring fresh competition to major domestic players like Coinbase Global Inc. and Kraken. Bloomberg reported earlier this year that Kraken is seeking to go public as soon as the first quarter of 2026.

Representatives at Binance, Coinbase, and Kraken didn’t immediately respond to requests for comment.

Source link