The Commodity Futures Trading Commission (CFTC) published an advisory highlighting that crypto firms previously forced offshore still have the option to register as Foreign Boards of Trade (FBOT) and legally engage US customers. This announcement reinforces the agency’s ongoing “crypto sprint” to modernize regulations and ensure clarity for market participants.
Acting Chairman Caroline Pham explained that FBOT registration allows non-US exchanges to offer trading services to Americans without needing to become designated contract markets (DCMs). The advisory does not change any rules but serves as an official reminder of an underutilized statutory pathway dating to the 1990s.
Under FBOT status, offshore platforms must demonstrate rigorous home-jurisdiction oversight while adhering to CFTC oversight requirements. The move aims to reduce regulatory arbitrage by encouraging firms to operate transparently in established compliance regimes rather than relying solely on enforcement actions.
Industry analysts view this emphasis on FBOT registration as a win for market efficiency. Allowing global platforms direct access to US liquidity pools could enhance trading volumes, reduce regional silos and foster a more unified digital asset ecosystem.
While CFTC officials expect a surge in FBOT applications, stakeholders await detailed guidance on the application process and timing for public comment opportunities. Observers believe that offering clear pathways under existing law sets the stage for broader legislative efforts to address stablecoin standards and spot trading regulations in Congress.
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