On August 28, 2025, the U.S. Commodity Futures Trading Commission (CFTC) issued an advisory allowing foreign crypto exchanges registered as Foreign Boards of Trade (FBOTs) to serve U.S. customers.
This advisory aims to clarify regulations, potentially reopening the U.S. market to international crypto platforms, affecting widely traded digital assets like BTC and ETH.
The Commodity Futures Trading Commission has issued a clear advisory, allowing foreign crypto exchanges registered as Foreign Boards of Trade to legally serve U.S. customers. This announcement addresses previous regulatory challenges without introducing new policies.
Caroline Pham, the Acting Chairman of the CFTC, released the advisory on August 28, 2025. The aim is to restore access for U.S. traders to the deepest global markets. This move provides a pathway for exchanges previously deterred by regulatory uncertainties.
Regulatory Clarity Boosts Potential for U.S. Crypto Activity
The advisory potentially reopens the U.S. market to offshore platforms, such as those trading BTC, ETH, and other digital assets. While the focus is on compliance, no immediate funding or institutional participation changes have been documented.
The regulatory clarity is expected to facilitate increased trading activity, offering U.S. participants access to a wider range of global platforms. However, it will take time to observe any significant liquidity or valuation changes as exchanges consider their options.
CFTC’s Advisory Rooted in Established 1990s Practices
The CFTC’s approach dates back to the 1990s, permitting Americans to participate in non-U.S. exchanges. This latest advisory reaffirms existing practices, providing assurance amidst a shifting regulatory environment, particularly after years of stringent measures.
While Kraken analyst Alex Burgess highlights that the advisory could shift market dynamics, Kanalcoin data suggests that significant changes may depend on whether major exchanges pursue FBOT status, prompting increased on-chain activity and regulatory adaptation.
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. By reaffirming the CFTC’s longstanding approach to provide U.S. traders with choice and access to the deepest and most liquid global markets… America 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. — Caroline Pham, Acting Chairman, CFTC
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