The Commodity Futures Trading Commission (CFTC) is preparing to issue an advisory clarifying how foreign exchanges can register to provide U.S. customers access to their platforms, according to Fox Business journalist Eleanor Terrett.
The move would update guidance on the agency’s foreign board of trade (FBOT) registration process, which has been in place since the 1990s, giving non-U.S. exchanges a clearer pathway to compliance. Acting CFTC Chair Caroline Pham described the initiative as part of an effort to reestablish market activity that had shifted offshore in recent years.
Pathway for Non-U.S. Platforms
The advisory is expected to outline procedures for non-U.S. exchanges seeking FBOT status, allowing them to legally offer services to U.S. traders. Under current rules, these exchanges can apply for registration with the CFTC to permit direct access for American participants, but industry observers have said the requirements remain unclear.
By issuing updated guidance, the CFTC aims to provide regulatory certainty and reduce barriers for overseas exchanges seeking to operate in the U.S. market. The clarification may also address concerns raised by firms that exited or limited access for American customers in response to heightened enforcement actions during the Biden administration.
Implications for U.S. Traders and Markets
For U.S. traders, the advisory could expand legal avenues to access global liquidity through foreign platforms that comply with CFTC rules. Analysts say the development could help restore confidence in cross-border market participation, particularly in digital asset trading.
Pham characterized the initiative as part of a broader “onshoring” effort to bring crypto activity back under U.S. oversight. The plan aligns with policy priorities of the Trump administration, which has emphasized a more permissive regulatory approach to digital assets.
Broader Policy Context
The CFTC’s planned advisory highlights a shift in U.S. regulatory tone, contrasting with prior enforcement-driven strategies. While the Securities and Exchange Commission has focused on prosecuting unregistered crypto offerings, the CFTC has sought to expand jurisdiction over derivatives and futures trading.
Market participants will be watching closely to see how the forthcoming guidance affects exchange registration timelines and compliance obligations. The advisory is expected to provide a framework that balances regulatory oversight with access to international markets, marking a significant step in U.S. crypto policy development.
