Acting CFTC Chairman Clears On-Ramp for Crypto Firms to Return to U.S. Markets

The U.S. Commodity Futures Trading Commission (CFTC) has announced a new regulatory framework that enables offshore cryptocurrency exchanges to legally serve U.S. clients through the Foreign Board of Trade (FBOT) registration process. The advisory, issued by the CFTC’s Division of Market Oversight, reaffirms long-standing rules that have allowed U.S. traders to access non-U.S. exchanges since the 1990s, and now explicitly includes digital asset markets under this framework. This move is intended to restore access to U.S. markets for crypto firms that had previously relocated to foreign jurisdictions due to regulatory uncertainty and enforcement actions.

Acting CFTC Chairman Caroline D. Pham emphasized the significance of the advisory, stating that it provides the necessary clarity to bring trading activity back to U.S. markets and expand opportunities for traders. The FBOT framework allows foreign exchanges—such as those offering crypto derivatives or spot products—to register with the CFTC and provide direct market access to U.S. participants without the need to become a designated contract market (DCM). This distinction is crucial, as it avoids the more stringent requirements associated with domestic exchange registration while still ensuring compliance with U.S. regulatory standards.

The advisory highlights a shift in the CFTC’s approach, moving away from a prior enforcement-heavy strategy that contributed to the exodus of crypto firms from the U.S. Between 2021 and 2024, a significant portion of crypto trading activity shifted to offshore exchanges due to regulatory ambiguity and enforcement risks. The new guidance aims to reverse this trend by offering a clear and accessible on-ramp for foreign exchanges to serve U.S. clients, provided they are regulated in their home jurisdictions with frameworks deemed credible by the CFTC.

The CFTC has received an increasing number of inquiries about the FBOT registration process, including its requirements and whether non-U.S. exchanges should register as a DCM or FBOT. The advisory reaffirms the agency’s preference for the FBOT registration pathway for non-U.S. entities that do not intend to operate as fully regulated U.S. exchanges. This clarification is expected to streamline the process for crypto exchanges seeking to enter or re-enter the U.S. market, particularly for those that have previously established separate U.S.-focused entities to serve local clients.

The announcement aligns with the broader "crypto sprint" initiative under the Trump administration, which seeks to establish the U.S. as a global leader in digital asset innovation. Acting Chair Pham has emphasized the importance of regulatory clarity in fostering responsible innovation and attracting crypto businesses back to the country. The CFTC’s recent actions, including the rescinding of certain staff advisories related to digital assets and the expansion of permissible intermediaries under Regulation 48.4, indicate a broader effort to create a more accommodating regulatory environment for the industry.

By enabling U.S. traders to access offshore crypto platforms through the FBOT framework, the CFTC aims to enhance market liquidity and reduce the fragmentation that has historically limited access to global trading opportunities. This development could also foster greater transparency and compliance in the crypto sector, as exchanges will now be required to adhere to CFTC oversight for U.S. clients. The advisory also invites public feedback on its crypto policies to ensure that regulatory approaches are effective in supporting innovation while protecting market participants.

Source:

[1] Acting Chairman Pham Announces FBOT Advisory to Provide Regulatory Clarity for Non-U.S. Exchanges (https://www.cftc.gov/PressRoom/PressReleases/9111-25)

[2] CFTC Clears Path to Allow US Citizens to Access Offshore (https://cointelegraph.com/news/cftc-pathway-americans-trade-offshore-crypto-exchanges)

[3] CFTC opens door for Web3 exchanges via FBOT registration (https://blockworks.co/news/cftc-fbot-registration)

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

[5] 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/)

[6] CFTC To US Traders: Foreign Crypto Exchanges Like ... (https://www.mitrade.com/insights/news/live-news/article-3-1079267-20250829)