CFTC released a new advisory allowing U.S. users to trade on non-U.S. crypto exchanges, such as Binance. This decision brings clarity to previously unregulated aspects of cryptocurrency trading.
CFTC's New Guidance
On Thursday, the CFTC's Division of Market Oversight issued an advisory clarifying that U.S.-based users can now trade on foreign, non-regulated crypto exchanges. This new guidance clarifies the Foreign Board of Trade (FBOT) registration framework, allowing non-U.S. exchanges to provide direct market access to U.S. customers.
Path Back to U.S. Markets
Acting Chairman Caroline Pham noted that the advisory allows American crypto companies, which were previously forced to leave due to regulatory uncertainty, to return to the market. "This advisory reaffirms the CFTC's commitment to providing U.S. traders with choice and access to global markets," she stated.
Enhancing Fraud Protection in Crypto Markets
Earlier this week, the CFTC announced the deployment of Nasdaq’s advanced market surveillance technology to enhance fraud detection. The new system will include automated alerts, analytics, and real-time monitoring across various asset classes, including cryptocurrencies.
CFTC is taking steps to simplify U.S. traders' access to international crypto markets and enhance fraud protection mechanisms, which may positively impact the sector's growth.
