The CFTC may authorize foreign crypto exchanges to operate

📌 The CFTC may authorize foreign crypto exchanges to operate under U.S. regulatory standards – how this would affect traders.

The approach would be based on the CFTCs longstanding framework for foreign boards of trade, known as FBOT, which has been in place since the 1990s. Under this framework, foreign venues can serve U.S. customers if their jurisdictions meet comparable regulatory standards. . Cryptocurrency

– The approach would be based on the CFTC’s longstanding framework for foreign boards of trade, known as FBOT, which has been in place since the 1990s. Under this framework, foreign venues can serve U.S. customers if their jurisdictions meet comparable regulatory standards.

Expanding recognition to qualified foreign platforms would be a notable increase in the CFTC’s cross-border footprint.

Pham argued that such an approach would help stop the leakage of U.S. cryptocurrency trading to offshore exchanges and instead bring those markets under a regulatory umbrella aligned with U.S. rules. She called this model the most practical way to repatriate trade volumes without waiting for lengthy legislative and regulatory reforms or new bilateral agreements.

Her call comes on the heels of a report by the President’s Working Group on Digital Asset Markets, which laid out a vision that officials called a golden age of cryptocurrencies.

The report calls on Washington to modernize banking oversight, strengthen the dollar’s role in global finance, ensure effective taxation and combat illicit use, while authorizing the SEC and CFTC to use existing authority to regulate digital asset trading under clear federal rules.

This includes simplifying storage, registration, trading and recordkeeping rules for companies wishing to enter the U.S. market.

Pham also noted that the CFTC will explore the possibility of accessing platforms certified under the EU’s Markets in Financial Instruments Directive (MiFID) or the Cryptoassets Regulation (MiCA). Other jurisdictions with equivalent regimes may also be recognized.

Major exchanges such as Kraken, KuCoin, Coinbase, OKX, Crypto.com and Gemini have already received MiFID and MiCA approvals, expanding their presence in Europe under these regimes.

The framework already includes requirements for capital, risk management, custody and retail customer protection, Pham said. Harmonizing them with U.S. rules will help avoid market fragmentation and enhance global coordination.

the CFTC and the SEC are accelerating efforts to clarify U.S. digital asset markets through the joint Crypto Sprint initiative.

the SEC has launched the “Crypto Sprint” and the CFTC has begun consultation on a trading rule. Both bodies are working to harmonize product definitions, reporting and capital requirements.

The move reflects an increasing push to integrate cryptocurrency markets into existing U.S. securities and futures laws. Just last week, the SEC and CFTC jointly confirmed that registered exchanges are allowed to register and trade certain spot digital assets, effectively incorporating them into longstanding investor protection and compliance standards.

September 29, a joint SEC and CFTC roundtable is scheduled to discuss regulatory consistency, including the role of decentralized finance. Last week, U.S. senators revised the Responsible Financial Innovation Act of 2025, clarifying the roles of the SEC and CFTC and adding protections for DeFi and emerging blockchain sectors.

Meanwhile, the agencies recently issued a joint staff statement clarifying that current U.S. law allows registered exchanges to support certain spot cryptocurrency transactions.

In addition, the CFTC has opened a public consultation on spot cryptocurrency trading and other proposals from the President’s Working Group on Digital Asset Markets.