Key takeaways
The CFTC is preparing to let U.S. citizens legally trade on offshore crypto exchanges. This move could reconnect U.S. traders with global liquidity, and reshape the future of digital asset regulation.
Acting Chair of the U.S. Commodity Futures Trading Commission (CFTC), Caroline D. Pham, is advocating for a policy that would allow American citizens to legally access and trade on offshore crypto exchanges such as Binance and OKX.
The timing is no coincidence.
U.S.-based Bitcoin [BTC] ETFs are pulling in record volumes, yet they still can’t match the dominance of crypto exchanges.
Even with ETFs churning out nearly $10 billion in daily BTC trades, most retail traders continue to flock to platforms like Binance for both Bitcoin and Ethereum [ETH].
CFTC moves to open offshore exchanges to U.S. traders
The CFTC has announced plans to let U.S. citizens legally trade crypto on offshore exchanges such as Binance, Bybit, and OKX.
The move is part of the agency’s so-called “crypto sprint,” which is aimed at creating regulatory clarity after years of enforcement-first tactics that drove trading overseas.
Republican Pham framed the change as a way to “onshore” activity that fled abroad, offering American traders direct access to global liquidity once again.
“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.”
She further stated,
“American companies that were forced to set up shop in foreign jurisdictions to facilitate crypto asset trading now have a path back to US markets…”
This is the first time that the CFTC announced that offshore platforms could be brought back into the U.S. regulatory fold.
A one-woman show
This announcement is especially striking because Pham is currently the only remaining Commissioner at the CFTC.
Kristin Johnson resigned earlier this week, leaving Pham with full control of the agency.
Such a rare situation gives her the authority to push forward bold or unconventional regulatory measures without internal opposition.
Source: cftc.gov
With the agency already facing staffing shortages, Pham’s solo leadership could steer U.S. crypto regulation in unexpected directions.
But with speculation mounting that she may step down once a permanent Chair is appointed, her window to enact sweeping reforms may be rapidly closing.
ETFs gain ground, but exchanges still rule the market
While the CFTC’s move could reshape access, trading habits tell a different story.
U.S.-based Bitcoin ETFs have quickly become a heavyweight in the market, generating between $5-10 billion in daily volume on busy days! Yet, for most traders, CEXs remain the venue of choice.
Binance alone regularly clears more volume than ETFs; hitting up to $18 billion in BTC and over $11 billion in ETH trades on peak days.
Even Ethereum’s market share shows this imbalance: Binance commands 35% of ETH spot trading, while ETFs sit far behind at just 4%.
