US regulators are loosening their grip again, can mainstream crypto trading platforms return to the United States?
BlockBeatsAug 29, 2025On August 28th, the U.S. Commodity Futures Trading Commission (CFTC) dropped a bombshell: Foreign Board of Trade (FBOT) guidance provides necessary regulatory clarity for legitimate on-shore trading activity. This means that overseas exchanges, long barred from the U.S., now have a legitimate path to return. In the past few years, giants like Binance and Bybit have been forced to restrict U.S. users or even exit the market altogether due to high regulatory pressure. Countless U.S. traders have either been stuck on local platforms with scarce products or have taken the risk of using VPNs to trade overseas. Now, the CFTC has made it clear that as long as they register through FBOT, these platforms can serve Americans legitimately without having to become "U.S. domestic exchanges" (DCM). Acting Chairman Caroline D. Pham even stated in the statement that this is to "bring back trading activity that has been driven out of the United States." Against the backdrop of the "Crypto Sprint" vigorously promoted by the Trump administration, this document is like a bugle call, indicating a complete shift in the U.S. regulatory direction. Why now? In the past few years, the U.S.'s attitude towards the crypto industry can almost be described as "enforcement-driven." During Biden's tenure, former SEC Chairman Gary Gensler held high the banner of "regulation as punishment," and from Binance to countless project parties became targets. In 2023, Binance was fined $4.30B and "completely withdrew" from the U.S. market, a scene that made the entire industry tremble. What the United States has lost is not just a few exchanges, but the entire market landscape: local users are forced to flow overseas, and funds follow suit; overseas platforms have secured the top spot in the derivatives market, with Binance, OKX, and Bitget's daily trading volume often reaching tens of billions, while U.S. domestic exchanges can only rank second-tier. Coinbase's daily derivatives trading volume is only $6.00B, and this lag is also due to the former SEC's restrictions on perpetual futures trading, staking, and leverage. At the same time, Singapore, Hong Kong, and the European Union are rapidly introducing more flexible frameworks, and the United States' original "regulatory dividend" is being eroded inch by inch. This is precisely why the CFTC's move is so timely. In early August, the CFTC just launched the "Crypto Sprint" program and publicly sought opinions on "whether spot crypto assets can be listed on registered exchanges (DCM)." In just a few weeks, the regulatory authorities received a large number of inquiries about "how foreign exchanges can return to the United States." The pressure from public opinion and industry feedback forced the CFTC to come up with a clear answer. The acceptance of overseas exchanges is both a correction of the "over-regulation" of the past few years and the starting point for the United States to regain its global market share. Under the grand background of the "Crypto Sprint," this guide is not just a procedural clarification, but more like an invitation: U.S. traders should stand in the same pool as global users and enjoy the deepest liquidity and the most diverse products. New Compliance Landscape: Return, Expansion, and Competition The most direct significance of the CFTC's FBOT consultation is that it brings U.S. traders back to the main pool of the global market. In the past, local exchanges were restricted by regulations, had limited products and liquidity, and many users were either forced to accept mediocre experiences or risked using VPNs to go to overseas platforms. Now, with the clarification of the compliance path, U.S. traders can finally enjoy the deepest liquidity and the richest products like their counterparts in Asia and Europe. This not only improves market efficiency, but also means that the United States can once again connect with the global financial stage. Some even predict that this may promote the growth of Bitcoin and Ethereum liquidity in the coming months. For overseas exchanges that have been barred for a long time, this is also a long-awaited "pass." Giants such as Binance, Bybit, and OKX have cut off U.S. users due to compliance pressure, but now they are ushering in a legitimate path to return. The huge user base and strong trading demand in the U.S. market have long made these platforms covetous, and the FBOT registration framework undoubtedly provides them with the key to legal expansion. For them, this is a new growth space; for users, it means more competitors entering, thereby bringing lower fees, better products and services. The significance of this consultation also lies in creating a more level playing field for local exchanges. In the past few years, the U.S. crypto market has almost become a "one-man show" for several local platforms. Now, with the opening of the FBOT registration path, overseas giants finally have a legal and compliant way to return. This means that the market is no longer a "reservation" for a few local exchanges, but has truly entered a stage of multi-party competition. The addition of more competitors will bring more intense price competition, faster product iteration, and higher service standards. For U.S. investors, this is a rare benefit: they no longer have to endure "passive choices," but can enjoy the liquidity and innovation provided by the world's top platforms in a more open and fair market. Summary This guide is not just clarifying a set of procedures, but repairing the image of U.S. regulation. In the past few years, the impression that the United States has left on the market is "rigid, punishment first," with vague policies and frequent enforcement, forcing funds and project parties to flee. Now, the CFTC is showing a posture of "willing to listen to opinions and correct deviations in a timely manner," which is not only a correction of over-regulation, but also telling the global market that the United States is turning to an era of transparent and open rules. Once this signal is received by the market, it will inevitably rebuild the confidence of investors and developers, and attract capital and innovation back to the United States. And this is the true core of the "Crypto Sprint" - not a slogan, but a real institutional action. [LFG]
Source
Powered by ChatGPT
All You Need to Know in 10s
Your One-Stop Crypto Investment Powerhouse
US regulators are loosening their grip again, can mainstream crypto trading platforms return to the United States?
BlockBeatsAug 29, 2025On August 28th, the U.S. Commodity Futures Trading Commission (CFTC) dropped a bombshell: Foreign Board of Trade (FBOT) guidance provides necessary regulatory clarity for legitimate on-shore trading activity. This means that overseas exchanges, long barred from the U.S., now have a legitimate path to return. In the past few years, giants like Binance and Bybit have been forced to restrict U.S. users or even exit the market altogether due to high regulatory pressure. Countless U.S. traders have either been stuck on local platforms with scarce products or have taken the risk of using VPNs to trade overseas. Now, the CFTC has made it clear that as long as they register through FBOT, these platforms can serve Americans legitimately without having to become "U.S. domestic exchanges" (DCM). Acting Chairman Caroline D. Pham even stated in the statement that this is to "bring back trading activity that has been driven out of the United States." Against the backdrop of the "Crypto Sprint" vigorously promoted by the Trump administration, this document is like a bugle call, indicating a complete shift in the U.S. regulatory direction. Why now? In the past few years, the U.S.'s attitude towards the crypto industry can almost be described as "enforcement-driven." During Biden's tenure, former SEC Chairman Gary Gensler held high the banner of "regulation as punishment," and from Binance to countless project parties became targets. In 2023, Binance was fined $4.30B and "completely withdrew" from the U.S. market, a scene that made the entire industry tremble. What the United States has lost is not just a few exchanges, but the entire market landscape: local users are forced to flow overseas, and funds follow suit; overseas platforms have secured the top spot in the derivatives market, with Binance, OKX, and Bitget's daily trading volume often reaching tens of billions, while U.S. domestic exchanges can only rank second-tier. Coinbase's daily derivatives trading volume is only $6.00B, and this lag is also due to the former SEC's restrictions on perpetual futures trading, staking, and leverage. At the same time, Singapore, Hong Kong, and the European Union are rapidly introducing more flexible frameworks, and the United States' original "regulatory dividend" is being eroded inch by inch. This is precisely why the CFTC's move is so timely. In early August, the CFTC just launched the "Crypto Sprint" program and publicly sought opinions on "whether spot crypto assets can be listed on registered exchanges (DCM)." In just a few weeks, the regulatory authorities received a large number of inquiries about "how foreign exchanges can return to the United States." The pressure from public opinion and industry feedback forced the CFTC to come up with a clear answer. The acceptance of overseas exchanges is both a correction of the "over-regulation" of the past few years and the starting point for the United States to regain its global market share. Under the grand background of the "Crypto Sprint," this guide is not just a procedural clarification, but more like an invitation: U.S. traders should stand in the same pool as global users and enjoy the deepest liquidity and the most diverse products. New Compliance Landscape: Return, Expansion, and Competition The most direct significance of the CFTC's FBOT consultation is that it brings U.S. traders back to the main pool of the global market. In the past, local exchanges were restricted by regulations, had limited products and liquidity, and many users were either forced to accept mediocre experiences or risked using VPNs to go to overseas platforms. Now, with the clarification of the compliance path, U.S. traders can finally enjoy the deepest liquidity and the richest products like their counterparts in Asia and Europe. This not only improves market efficiency, but also means that the United States can once again connect with the global financial stage. Some even predict that this may promote the growth of Bitcoin and Ethereum liquidity in the coming months. For overseas exchanges that have been barred for a long time, this is also a long-awaited "pass." Giants such as Binance, Bybit, and OKX have cut off U.S. users due to compliance pressure, but now they are ushering in a legitimate path to return. The huge user base and strong trading demand in the U.S. market have long made these platforms covetous, and the FBOT registration framework undoubtedly provides them with the key to legal expansion. For them, this is a new growth space; for users, it means more competitors entering, thereby bringing lower fees, better products and services. The significance of this consultation also lies in creating a more level playing field for local exchanges. In the past few years, the U.S. crypto market has almost become a "one-man show" for several local platforms. Now, with the opening of the FBOT registration path, overseas giants finally have a legal and compliant way to return. This means that the market is no longer a "reservation" for a few local exchanges, but has truly entered a stage of multi-party competition. The addition of more competitors will bring more intense price competition, faster product iteration, and higher service standards. For U.S. investors, this is a rare benefit: they no longer have to endure "passive choices," but can enjoy the liquidity and innovation provided by the world's top platforms in a more open and fair market. Summary This guide is not just clarifying a set of procedures, but repairing the image of U.S. regulation. In the past few years, the impression that the United States has left on the market is "rigid, punishment first," with vague policies and frequent enforcement, forcing funds and project parties to flee. Now, the CFTC is showing a posture of "willing to listen to opinions and correct deviations in a timely manner," which is not only a correction of over-regulation, but also telling the global market that the United States is turning to an era of transparent and open rules. Once this signal is received by the market, it will inevitably rebuild the confidence of investors and developers, and attract capital and innovation back to the United States. And this is the true core of the "Crypto Sprint" - not a slogan, but a real institutional action. [LFG]
Powered by ChatGPT
Scan QR Code to Explore more key information
One-stop financial research platform for Crypto Investors
00:00 / 00:00
00:0000:0000:00