The US Commodity Futures Trading Commission (CFTC) has issued an advisory clarifying that non-US crypto trading platforms can obtain Foreign Board of Trade (FBOT) status to legally onboard US-based clients. Under the FBOT framework, which dates back to the 1990s, offshore venues across all asset classes may register with the CFTC and offer trading services directly to American participants without needing to set up separate domestic entities.
CFTC Acting Director Caroline Pham emphasized that the advisory serves as a reminder rather than a policy change, stating that firms pressured to leave the US in previous years now have a clear path back to American markets. The move is part of the agency’s broader “crypto sprint” initiative, aimed at updating and streamlining regulations to encourage innovation while maintaining market integrity.
Industry observers note that enabling global platforms to access US liquidity could enhance overall market efficiency and reduce fragmentation across jurisdictions. Crypto exchanges such as Binance, which currently operate through constrained domestic subsidiaries, may consider FBOT registration as a faster route to serve US customers under a unified regulatory regime.
Legal experts argue that clear registration pathways will lower compliance burdens and diminish reliance on enforcement actions as the primary regulatory tool. By opening the door for foreign exchanges, the CFTC seeks to promote competition and advance President Trump’s stated goal of re-establishing US leadership in digital asset markets.
While the advisory imposes no new requirements, it underscores the CFTC’s willingness to leverage existing statutes, offering market participants a stable framework for long-term planning. Observers expect further guidance on the public comment process and detailed registration steps to follow in the coming weeks.
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