The Commodity Futures Trading Commission has issued an
advisory clarifying how foreign exchanges can provide direct market access to
U.S. traders under its Foreign Board of Trade (FBOT) registration framework.
FBOT Advisory Issued
The Division of Market Oversight published the
advisory on Wednesday. It applies to all asset classes, including digital
assets, and is aimed at non-U.S. entities legally organized and operating
abroad. The framework governs how these exchanges can register to serve U.S.
customers.
“Today’s FBOT advisory provides the regulatory clarity
needed to legally onshore trading activity that was driven out of the United
States due to the unprecedented regulation and enforcement approach of the past
several years,” commented Acting Chairman Caroline D. Pham.
“By reaffirming the CFTC’s longstanding approach to
provide U.S. traders with choice and access to the deepest and most liquid
global markets, with a wide range of products and asset classes, American
companies that were forced to set up shop in foreign jurisdictions to
facilitate crypto asset trading now have a path back to U.S. markets,” Pham explained.
Registration Framework Reaffirmed
“Since the 1990s, Americans have been able to trade on
non-U.S. exchanges that are registered with the CFTC as FBOTs,” Pham added.
“Starting now, the CFTC welcomes back Americans who want to trade efficiently
and safely under CFTC regulations, and opens up U.S. markets to the rest of the
world.”
The CFTC said the advisory responds to rising
inquiries from global firms about whether they should register as a designated
contract market (DCM) or FBOT. Recent enforcement actions have created uncertainty by applying new interpretations that are inconsistent with decades of
practice.
By reaffirming the FBOT framework, the agency aims to
promote regulatory clarity, reduce disruption, and maintain consistent access
for U.S. traders.
Under President Donald Trump, the US has softened its stance on regulating digital assets. The most notable change was the passing of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act into law.
The measure establishes regulatory oversight for
stablecoin issuers, setting the stage for broader cryptocurrency regulation in
the United States.
The GENIUS Act defines key requirements for the
issuance and operation of stablecoins, aiming to bring greater clarity and
supervision to a fast-growing corner of the digital asset market.
This article was written by Jared Kirui at www.financemagnates.com.
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