The U.S. Commodity Futures Trading Commission (CFTC) is considering a move that could significantly alter the landscape of crypto trading in the United States. Acting Chairwoman Caroline D. Pham indicated on September 8th that the agency is exploring pathways for international cryptocurrency exchanges to operate within the U.S. regulatory system.
Speaking before a UK parliamentary group focused on blockchain technologies, Pham detailed a potential framework designed to expand access for American traders and bring overseas crypto activity under U.S. regulatory supervision.
This announcement comes shortly after the CFTC released guidance permitting foreign exchanges to offer U.S. traders direct access to their markets.
The proposed approach would leverage the CFTC’s existing framework for Foreign Boards of Trade (FBOTs), a system in place since the 1990s. This system allows international exchanges to serve U.S. customers provided their home countries maintain comparable regulatory standards.
Extending this recognition to eligible international platforms would represent a substantial increase in the CFTC’s influence over cross-border crypto activity.
Pham emphasized that this approach could help reverse the flow of U.S. crypto trading to offshore platforms, bringing that activity under the purview of U.S. regulations. She presented this framework as the most effective way to repatriate trading volume without relying on lengthy legislative processes or new international agreements.
CFTC Aims for Global Crypto Harmony, Encouraging U.S. Return for Firms
During her address, Acting Chairwoman Pham pointed out that numerous American crypto firms have shifted operations abroad in recent years, citing a lack of regulatory clarity within the United States. Regulatory frameworks developed in Europe, Asia, and the Middle East have attracted these companies. She stressed that the U.S. must act now to welcome back platforms seeking to invest, hire, and build within the country.
Pham’s statement follows the release of the President’s Working Group on Digital Asset Markets report, which outlines a vision for what officials have termed a “Golden Age of Crypto.”
The report urges Washington to modernize banking regulations, reinforce the dollar’s position in global finance, enforce robust taxation, and combat illicit activity, while also tasking the SEC and CFTC with utilizing their existing authorities to authorize digital asset trading under clear federal standards.
This would involve streamlining rules regarding custody, registration, trading, and record-keeping for firms seeking to enter the U.S. market.
Pham also indicated that the CFTC will assess whether platforms authorized under the European Union’s Markets in Financial Instruments Directive (MiFID) or the Markets in Crypto-Assets Regulation (MiCA) would qualify for access. Other jurisdictions with comparable regulatory systems could also be considered.
Major exchanges, including Kraken, KuCoin, Coinbase, OKX, Crypto.com, and Gemini, have already sought MiFID and MiCA approvals, expanding their presence across Europe under these regulations.
According to Pham, these European frameworks already incorporate requirements for capital, risk management, custody, and consumer protection. Aligning these standards with U.S. regulations could help prevent market fragmentation and enhance global coordination.
CFTC and SEC Launch “Crypto Sprint” Amid Increased Global Scrutiny of Offshore Exchanges
The CFTC and the Securities and Exchange Commission (SEC) are intensifying their efforts to provide clarity to U.S. digital asset markets through a collaborative “Crypto Sprint” initiative.
The SEC has initiated “Project Crypto,” while the CFTC has opened public consultations on trading rules. Both agencies are working towards harmonizing product definitions, reporting requirements, and capital requirements.
This push reflects a growing trend toward integrating crypto markets within existing U.S. securities and futures laws. Just recently, the SEC and CFTC jointly confirmed that registered exchanges are permitted to list and trade certain spot digital assets, effectively incorporating them into established investor protection and compliance frameworks.
A joint SEC-CFTC roundtable is scheduled for Sept. 29 to discuss regulatory alignment, including the role of decentralized finance. Last week, U.S. senators revised the Responsible Financial Innovation Act of 2025 to clarify the roles of the SEC and CFTC and to add protections for DeFi and emerging blockchain sectors.
Furthermore, the agencies recently issued a joint statement clarifying that current U.S. law allows registered exchanges to facilitate certain spot crypto trades.
Additionally, the CFTC has initiated a public consultation on listed spot crypto trading and other proposals stemming from the President’s Working Group on Digital Asset Markets.
This U.S. policy acceleration coincides with increased global scrutiny of offshore exchanges. Bybit has resumed its trading app in India after paying a 9.27 crore rupee ($1.06 million) fine for violating anti-money laundering regulations.
Meanwhile, South Korea’s Financial Intelligence Unit (FIU) is investigating unregistered overseas crypto exchanges, including BitMEX, KuCoin, CoinW, Bitunix, and KCEX, for targeting local users without proper registration.
In 2023, Taiwan’s Financial Supervisory Commission (FSC) announced plans to restrict offshore crypto exchanges unless they register locally, aiming to improve transparency, establish listing standards, and ensure proper management of client assets.
The post CFTC May Approve Foreign Crypto Exchanges Under U.S. Rules — What It Means for Traders appeared first on Cryptonews.