CFTC Reaffirms FBOT Framework to Reopen US Crypto Markets to Foreign Exchanges ● ●
The CFTC clarifies that foreign exchanges can serve US traders under the longstanding FBOT registration system The move is expected to restore market access, boost liquidity, and reduce fragmentation in US crypto trading
The US Commodities Futures Trading Commission reaffirmed last Friday, August 29, that the Foreign Board of Trade FBOT) registration framework, could be used by non-US exchanges to serve US traders. This framework applies to all types of markets—including commodities and digital assets such as cryptocurrencies—and restores a clear legal pathway for foreign exchanges to operate within US jurisdiction. Acting Chairman Caroline Pham emphasised that this revives a regulatory route that had become clouded by years of uncertainty and aggressive ‘regulation by enforcementʼ of the last US administration. Many US companies and exchanges had shifted operations offshore to avoid inconsistent regulatory interpretations. By reasserting the FBOT mechanism, in place since the 1990s, the CFTC aims to bring back market participants under a stable and well-established structure.