CFTC Clears Path for Crypto Firms to Return to U.S. Markets

The Commodity Futures Trading Commission (CFTC) has issued a regulatory advisory that opens the door for offshore crypto exchanges to provide direct market access to U.S. traders under the Foreign Board of Trade (FBOT) registration framework. This move is part of the CFTC’s broader “crypto sprint” initiative aimed at facilitating the reintegration of American cryptocurrency firms into U.S. markets. The advisory reaffirms that non-U.S. exchanges can register as FBOTs to offer their services to U.S. customers without the need to become designated contract markets (DCMs), provided they are adequately regulated in their home jurisdictions [1].

Acting CFTC Chairman Caroline Pham emphasized that the advisory serves to provide much-needed regulatory clarity to firms that were compelled to operate outside the U.S. to facilitate crypto trading. She noted that since the 1990s, Americans have been able to trade on non-U.S. exchanges registered as FBOTs. The CFTC aims to encourage the return of U.S. crypto businesses by reaffirming its long-standing support for FBOTs, which allows U.S. traders access to a variety of asset classes and deep, liquid global markets [1].

The advisory addresses rising inquiries from global firms about the appropriate registration pathway—whether they should register as a DCM or an FBOT. The CFTC’s guidance seeks to streamline the process, reduce regulatory uncertainty, and maintain consistent access for U.S. traders. By promoting the FBOT framework, the CFTC aims to reduce disruptions caused by inconsistent interpretations of prior enforcement actions and create a clearer path for offshore exchanges to serve U.S. clients [2].

The advisory also highlights the agency’s commitment to fostering a stable regulatory environment for digital asset markets. It aligns with broader shifts in U.S. crypto policy under the Trump administration, including the passage of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. This legislation establishes oversight for stablecoin issuers, signaling the administration's intention to provide a more structured regulatory landscape for the fast-growing crypto sector [2].

The CFTC’s updated guidance has been welcomed as a step toward harmonizing the regulatory treatment of digital asset derivatives with other financial products. Acting Chairman Pham stated that the advisory underscores the CFTC’s role in supporting a competitive and accessible trading environment while ensuring compliance with U.S. regulatory standards. The agency’s actions are expected to encourage greater participation from offshore exchanges that operate in jurisdictions with robust regulatory frameworks, thereby expanding market depth and liquidity for U.S. investors [3].

Source:

[1] CFTC: Crypto Firms That Left U.S. Can Open Doors Here as ... (https://finance.yahoo.com/news/cftc-crypto-firms-left-u-184618231.html)

[2] CFTC Creates “Path Back” for Crypto Firms to Reenter U.S. ... (https://www.financemagnates.com/cryptocurrency/cftc-guidance-creates-path-back-for-crypto-firms-to-reenter-us-markets/)

[3] CFTC: Registration for Exchanges Includes Digital Asset ... (https://www.pymnts.com/news/regulation/2025/cftc-says-registration-framework-for-non-us-exchanges-includes-digital-asset-markets/)