The CFTC has announced new regulations that will make it easier for U.S. citizens to legally trade on cryptocurrency exchanges abroad.
New CFTC Rules
The U.S. Commodity Futures Trading Commission (CFTC) has announced new regulations allowing non-U.S. companies to register with the Foreign Board of Trade (FBOT) and offer direct access to individuals physically located in the U.S. These rules encompass both traditional and digital asset markets, aiming to restore crypto trading activities that have been relocated outside the U.S. due to recent regulations.
CFTC Chair's Statement
CFTC Acting Chairwoman Caroline D. Pham commented on the new regulations, stating: > "The FBOT advisory released today provides the regulatory clarity necessary to legally return to trading activities that have fled the US due to the overly harsh regulatory approach implemented in recent years. By reaffirming the CFTC's long-held approach, we offer US investors access to global markets and a broad range of products. Americans can now trade safely and efficiently under CFTC oversight."
Historical Context of Regulatory Changes
Pham also noted that this regulation is part of the Trump administration’s push in the crypto space, emphasizing: > "This is yet another acquisition by the CFTC as part of its crypto offensive for President Trump." The CFTC has been allowing U.S. citizens to trade through registered FBOTs since the 1990s. The new regulations aim to clarify recent uncertainties surrounding whether foreign exchanges need to register as designated markets (DCMs) or FBOTs.
The new CFTC regulations may help restore trust in cryptocurrency trading among Americans by opening access to international markets and improving investment conditions.
