Can a non-US Based Crypto Derivatives Exchange Be Subject to US Regulatory Oversight?

Yes, a non-US based exchange can be subject to US regulatory oversight if it solicits or accepts orders from US customers or if its activities have a direct and foreseeable effect within the US. Regulators like the CFTC and SEC apply an "effects test" and "conduct test." If the exchange's front-running activities involve US persons or significantly impact US markets, the US regulator may assert jurisdiction.