This week, the Commodity Futures Trading Commission (CFTC) issued an advisory regarding the foreign board of trade (FBOT) registration framework for non-U.S. entities legally organized abroad that aim to provide direct market access to their trading platforms for U.S. participants.
The CFTC clarified that the FBOT registration framework is applicable to all markets, encompassing both traditional and digital asset markets. This clarification follows the CFTC’s acknowledgment of the evolving global derivatives markets and recent questions about whether non-U.S. exchanges should register as designated contract markets (DCM) or FBOTs, prompted by recent enforcement actions.
By reaffirming the FBOT registration framework, this advisory seeks to enhance regulatory clarity and facilitate market access. This announcement aligns with the CFTC’s March 2025 statement indicating that digital asset derivatives would receive the same regulatory treatment as other products.
Acting CFTC Chairman Caroline D. Pham stated, “Today’s FBOT advisory provides the regulatory clarity needed to legally onshore trading activity that has been driven out of the United States due to previous enforcement-focused regulations. By reaffirming the CFTC’s approach, we ensure U.S. traders have access to the deepest and most liquid global markets, offering a wide range of products and asset classes. American companies that have relocated to foreign jurisdictions for crypto asset trading now have a path back to U.S. markets.”
She emphasized that the existing FBOT registration categories represent the simplest and fastest solutions for American traders. Since the 1990s, U.S. participants have been able to trade on registered non-U.S. exchanges, and now the CFTC invites back Americans seeking efficient and safe trading under its regulations, enhancing U.S. market access to the global landscape.