CFTC clears path for Americans to access non-U.S. exchanges

The Commodity Futures Trading Commission has issued new guidance clarifying how non-U.S. exchanges can legally provide direct market access to American traders. 

Announced on Aug. 28, the advisory upholds the established Foreign Board of Trade registration system in accordance with CFTC Part 48 regulations. It lays out a clear pathway for foreign platforms to register as FBOTs instead of as Designated Contract Markets and applies to all asset classes, including digital assets.

Regulatory clarity for foreign exchanges

This distinction is significant. In recent years, confusion around whether offshore crypto platforms needed full DCM registration led to enforcement actions and pushed trading activity abroad.

Acting CFTC Chair Caroline D. Pham described the move as part of the agency’s “crypto sprint” under the Trump administration, aimed at modernizing outdated frameworks.

“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.”

— Caroline D. Pham, CFTC Chair

The FBOT model has existed since the 1990s, allowing U.S. customers to trade on foreign markets that meet comparable regulatory standards in their home jurisdictions. With the CFTC’s reaffirmation of this structure, major offshore players, from traditional derivatives venues to large cryptocurrency exchanges, may soon return to the U.S. market under regulated conditions.

Implications for U.S. traders

The advisory could provide American traders with more leverage, access to international liquidity pools, and a greater selection of products than those currently offered on domestic exchanges. While offshore venues like Binance, Bybit, and OKX frequently operated in a gray area, platforms like Coinbase and Kraken have been subject to more stringent regulations.

Registered FBOTs would allow U.S. traders to access those platforms through CFTC-regulated intermediaries, such as futures commission merchants or introducing brokers. This arrangement seeks to strike a balance between increased market choice and government control.

However, unregistered access is still prohibited, and exchanges need to be physically present outside of the US in order to be eligible. The advisory clarifies existing regulations rather than introducing new ones in an effort to reduce uncertainty and encourage companies to resume operations in U.S. markets. 

As the global derivatives and digital asset markets grow, the CFTC’s recent action demonstrates a shift away from enforcement-led policy toward more transparent, rules-based access. The move may alter market dynamics in the coming months for American traders who have historically had few domestic options.