The CFTC has announced a new advisory called the FBOT framework, which lets Americans trade on crypto exchanges outside the U.S.
According to the acting Chair Caroline Pham, the advisory restores clarity after years of uncertainty. She explained that the guidance gives U.S. traders a clear and safe way to access foreign platforms while keeping everything under CFTC oversight.
“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 by enforcement approach of the past several years,” Pham said.
The advisory also applies to exchanges that are organized outside the U.S. but want to serve Americans. It covers all types of markets, including crypto, and clarifies how these platforms can register under the FBOT system.
Pham emphasized that the advisory allows U.S. users to trade securely on platforms that meet registration rules. She added that it provides a clear way for American companies operating abroad to reconnect with U.S. markets.
“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,” she said.
Furthermore, the advisory also addresses confusion about whether non-U.S. exchanges should register as a foreign board of trade or as a designated contract market, as Recent actions had created some uncertainty. By confirming that the FBOT framework applies to crypto, the CFTC aims to make the process straightforward for everyone.
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