USDCFTC Considers Extending U.S. Rules to Global Crypto Exchanges
The Commodity Futures Trading Commission (CFTC) is exploring a plan that could let foreign crypto exchanges serve U.S. traders under American oversight. Acting Chairman Caroline D. Pham outlined the idea on September 8 in London, calling it a practical way to bring trading activity back to U.S. markets without waiting years for new laws.
Using an Old Framework for a New Market
The CFTC isn’t inventing something new from scratch. Since the 1990s, it has relied on the foreign board of trade (FBOT) framework to let overseas commodity exchanges provide access to U.S. customers if their home countries have strong and compatible regulations. Pham suggested applying this same model to crypto.
If implemented, qualified foreign exchanges would be recognized under USA rules as long as their jurisdictions meet comparable standards. That would allow American traders to use platforms abroad without losing the protections of USA oversight. Pham argued this would help stop the steady flow of trading to offshore venues and keep more of the activity under the United States supervision.
Similar thinking could also influence how regulators eventually approach areas like crypto gambling. In the U.S., only a handful of states regulate online casinos and even fewer address crypto casinos directly, which has led many players to seek out resources such as Aviator betting strategies on Esports Insider. Resources like these highlight Aviator crash-style games on credibly licensed offshore casino sites where a digital plane takes off and multipliers climb until it flies away, gaining popularity for its fast pace and simple gameplay. Offshore-regulated Aviator casinos often attract fans with perks like generous bonuses, quick payouts, flexible crypto payment options, and round-the-clock access. However, a U.S. framework modelled on proven foreign standards could bring that same appeal into domestic markets, making them more competitive and giving investors stronger reasons to keep their capital at home.
Offshore regulations in the entertainment sector point to a bigger picture. By modelling foreign platforms that already meet strong regulatory standards, the U.S. can ease its own rules in a controlled way and make local markets more attractive. Extending that approach to crypto would give investors more confidence to put their money into regulated U.S. markets instead of moving it offshore.
Bringing Firms Back Onshore
Over the last few years, a growing number of American crypto companies have set up abroad because the U.S. has yet to settle on clear rules. Regulators in Europe, Asia and the Middle East moved faster, and that gave businesses the certainty they needed to keep building.
Pham said the U.S. has to move faster if it wants those firms to return. Her comments followed after a study was released by the President's Working Group on Digital Asset Markets. She stated that the industry could only grow if Washington were to update their regulations. She further urged the banks for stronger oversight, as well as clearer trading rules and safety procedures to protect investors
Recognizing European Standards
In Europe, MiFID and MiCA are now the main benchmarks in this debate. MiFID and MiCA require exchanges to keep enough capital, protect customer funds, and manage risk, while also adding consumer safeguards. In the U.S., lawmakers are chasing the same goals with the GENIUS Act, which sets rules for stablecoin reserves, licensing, and investor protection.
Major players like Coinbase, Kraken, KuCoin, OKX, Crypto.com, and Gemini have already secured these approvals as they expand in Europe. If the CFTC treats those frameworks as equivalent, the same licenses could let these firms operate in the U.S.
Pham said recognition of foreign standards would help keep markets steady and called on regulators to work together rather than act alone. She noted that other regions with strong rules could also qualify, building a more consistent global framework for crypto.
SEC and CFTC Step Up Coordination
The CFTC plan comes as it and the SEC move to bring more order to U.S. digital asset markets. Their joint Crypto Sprint aims to resolve questions on definitions, reporting, and capital rules. The SEC has launched Project Crypto, while the CFTC has held consultations on trading standards. Earlier this month, they confirmed registered exchanges can list and trade certain spot assets, extending long-standing protections to them.
A joint roundtable on September 29 will focus on how DeFi should be regulated. At the same time, Congress is revising the Responsible Financial Innovation Act of 2025 to clarify agency roles and add new safeguards for DeFi and other blockchain sectors.
Rising Pressure on Offshore Exchanges
Other regulators around the world are also tightening controls on platforms that operate without approval. In India, Bybit was fined a million dollars for anti-money laundering violations before being allowed to restart its trading app. South Korea’s Financial Intelligence Unit is investigating exchanges such as KuCoin, BitMEX, CoinW, Bitunix and KCEX for targeting local users without authorization.
Taiwan’s Financial Supervisory Commission in 2023 required offshore exchanges to register locally, aiming for stronger disclosure, tighter listing rules, and better protection of customer funds. This approach mirrors the CFTC’s push to let foreign platforms with solid rules operate in the U.S., giving traders steadier access while restoring regulatory oversight of offshore activity.
