The CFTC has released a new advisory regarding the interaction of foreign trading platforms with clients from the US. This decision is aimed at allowing American projects to return to the market.
CFTC Advisory
The Commodity Futures Trading Commission (CFTC) has issued an advisory aimed at clarifying how foreign boards of trade can interact with US clients in a compliant manner.
Acting Chair Caroline Pham, who is reportedly on track to join cryptocurrency platform Moonpay, is framing this as a step towards bringing cryptocurrency activity back to the US market.
Myths about Traders Returning to Binance
Several social media accounts and media outlets have started circulating oversimplified headlines about major cryptocurrency exchanges like Binance and OKX being able to welcome US traders again. However, this statement does not fully reflect the reality, as the CFTC has established strict compliance requirements for foreign boards of trade.
The advisory is primarily aimed at creating opportunities for American cryptocurrency developers amidst improving regulatory conditions.
Binance Ban on US Users
Binance began banning US users around June 2019 due to heightened regulatory scrutiny. Since then, the exchange has faced numerous accusations of attempting to circumvent these restrictions. In 2023, the CFTC sued Binance for allegedly luring in US customers, which ultimately led to a settlement with the commission for nearly $3 billion.
The CFTC advisory serves as an important signal for American crypto projects, opening the path for their return to the local market. However, significant regulatory hurdles still exist for foreign exchanges.
