The US Commodity Futures Trading Commission (CFTC) announced on Thursday that American traders will now have access to foreign cryptocurrency exchanges, marking another regulatory breakthrough for the digital asset industry.
Today’s FBOT advisory provides the regulatory clarity needed to legally onshore trading activity that was driven out of the United States due to the unprecedented regulation by enforcement approach of the past several years.
Pham noted that the CFTC aims to offer US traders a choice and access to deep and liquid global markets with a diverse range of products and asset classes, particularly beneficial for American companies that had previously relocated to foreign jurisdictions to facilitate crypto trading.
This means that while US traders will gain more legal access to global liquidity, foreign cryptocurrency exchanges must still meet specific regulatory standards to operate in the US market.
In 2019, platforms like Binance ceased operations for US users due to regulatory issues that worsened in 2023 with the resignation of former CEO Changpeng Zhao (CZ). Since then, Binance.US has launched for US residents.
With the announcement, Binance Coin (BNB) jumped back above $876 after dropping below $830 earlier this week. This positions BNB’s price only 3% below all-time high levels of $899.
Featured image from DALL-E, chart from TradingView.com
