While this news primarily reiterates existing policy, the reminder signals that the CFTC is increasingly receptive to offshore exchanges that operate in jurisdictions that the US considers as having ‘credible’ regulatory frameworks.
Editorial
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This week, the CFTC – the Commodity Futures Trading Commission –ย issued an advisory on the foreign board of trade (FBOT) registration framework for non-US entities legally organised and operating outside the nation that look to provide those within the US with direct market access to their trading platforms.
The CFTC reiterated that the FBOT registration framework applies to all markets, regardless of asset class, and includes both traditional and digital asset markets. This comes after recognition of the ongoing evolution of the global derivatives markets by the CFTC andย recent confusion regarding whether non-US exchanges should register as a designated contract market (DCM) or FBOT due to the Commission’s recent enforcement actions.
By reaffirming the CFTCโs registration framework for FBOTs, this advisory intends to promote regulatory clarity and access to markets. This news also follows the CFTC’s announcement in March 2025 that stated that digital asset derivatives will get the same regulatory treatment as other products.
Acting Chairman of the CFTC Caroline D. Pham says: “Todayโs 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. By reaffirming the CFTCโs longstanding approach to provide U.S. traders with choice and access to the deepest and most liquid global markets, with a wide range of products and asset classes, American companies that were forced to set up shop in foreign jurisdictions to facilitate crypto asset trading now have a path back to U.S. markets.
“As Iโve said before, the CFTCโs existing registration categories are the simplest and fastest solution. Since the 1990s, Americans have been able to trade on non-U.S. exchanges that are registered with the CFTC as FBOTs. Starting now, the CFTC welcomes back Americans that want to trade efficiently and safely under CFTC regulations, and opens up U.S. markets to the rest of the world. Itโs just another example of how the CFTC will continue to deliver wins for President Trump as part of our crypto sprint.”
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