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CFTC Clears Path for Foreign Crypto Access to US Traders
Key Takeaways
- The CFTC updated its rules to let foreign crypto exchanges legally serve US customers;
- The new framework gives overseas crypto firms a clear process to register with US regulators;
- CFTC’s decision may shift crypto activity back to the US after years of firms moving abroad.
The Commodity Futures Trading Commission (CFTC) has introduced a new set of rules that could allow international crypto exchanges to legally engage with US customers.
On August 28, the agency published an update to its registration framework for foreign commodity exchanges.
This update applies to both traditional and cryptocurrency markets. It outlines how overseas companies can receive approval to offer services to American users.
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Acting CFTC Chair Caroline D. Pham emphasized that this step addresses confusion created by past regulatory methods. Pham stated that the new policy provides companies with a clear path back into the American market.
She also referred to the update as part of the CFTC’s effort to meet the goals of President Donald Trump’s administration.
Under the previous regulatory environment, US-based exchanges were restricted in the types of services they could provide. For example, they faced limits on offering perpetual futures, leverage, and staking rewards.
As a result, exchanges such as Binance
Pham also shared in a post on X that the CFTC’s decision could help reconnect global exchanges with US markets. She noted that this may influence how these markets evolve in the future.
The announcement came after Kristin Johnson revealed she would be stepping down from her position at the CFTC on August 26. What did she say? Read the full story.