On August 28, 2025, the Commodity Futures Trading Commission’s (CFTC) Division of Market Oversight (DMO) issued an advisory clarifying the Foreign Board of Trade (FBOT) registration framework for non-U.S. entities. The framework applies to both traditional and digital assets and is designed for foreign exchanges looking to offer direct market access to participants based in the U.S. The advisory comes at a time of regulatory uncertainty and aims to restore clarity for global market operators engaging with U.S. traders.
Acting Chair Caroline D. Pham emphasized that “American companies that were forced to set up shop in foreign jurisdictions to facilitate digital-asset trading now have a path back to U.S. markets,” signaling that the CFTC is committed to providing U.S. traders with access to deep, liquid global markets. In place since the 1990s, FBOT registration pathway now offers a streamlined solution for digital-asset trading and other digital-asset market participants to operate under clear U.S. regulations.
As innovation in the global derivatives markets accelerates, the CFTC’s DMO has seen a significant increase in inquiries regarding FBOT registration requirements, including when registration is required and how to obtain FBOT registration.
Recent CFTC enforcement actions inconsistent with precedent have led to uncertainty over whether non-U.S. exchanges should register as a Designated Contract Market (DCM) or a FBOT. The DMO’s advisory attempts to resolve the ambiguity by reaffirming the FBOT framework, promoting regulatory clarity, and facilitating broader market access, explicitly stating that “for the avoidance of doubt, a FBOT that is registered with the CFTC… does not need to become a DCM in order to provide U.S. located…participants with direct access to the electronic trading… system of the FBOT” and vice versa.
