29 Aug
29Aug

The Commodity Futures Trading Commission (CFTC) has issued new guidance clarifying how non-U.S. exchanges can register to directly serve American customers. Issued on August 28, the advisory from the CFTC’s Division of Market Oversight reaffirms a longstanding framework from the 1990s, which permits foreign exchanges to register as "foreign boards of trade" (FBOTs) to offer their services across all asset classes, including digital assets.

According to Acting Chair Caroline Pham, this guidance aims to provide clarity and encourage trading activity that was previously pushed out of the U.S. due to "regulation by enforcement." The move offers a clear pathway for American firms that had to move their crypto operations overseas to now return to the U.S. market. The advisory addresses confusion stemming from recent enforcement actions that blurred the line between FBOT and designated contract market (DCM) registration.

To register as an FBOT, foreign exchanges must show they are under comparable regulatory oversight in their home country and agree to share information with U.S. authorities. Registered FBOTs can then offer direct access to eligible U.S. traders. The CFTC emphasized that this framework applies universally to both traditional and digital asset markets. This announcement, which aligns with President Trump's "crypto sprint" initiative, comes a day after the CFTC announced it would be integrating Nasdaq's surveillance system to enhance its oversight of crypto and derivatives markets.

August 2025, Cryptoniteuae

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