CFTC seeks to relax registration for non-US futures exchanges

The Commodity Futures Trading Commission has moved to relax the registration of non-US exchanges including crypto venues as the US futures watchdog implements the President’s directive on digital assets.

The US regulator’s foreign board of trade (FBOT) registration framework covers non-U.S. entities that seek to provide US residents access to their platforms across traditional and digital asset markets.

CFTC acting chair Caroline Pham said: “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.”

“American companies that were forced to set up shop in foreign jurisdictions to facilitate crypto asset trading now have a path back to US markets.”

In February, Pham announced a reorganisation of the CFTC Division of Enforcement to focus on fraud and end “regulation by enforcement.”

The watchdog said its latest advisory follows multiple inquiries about FBOT registration and designated contract market (DCM)-status for non-US exchanges. The advisory is intended to promote clarity and access to markets, the regulator said.

Pham added: “Since the 1990s, Americans have been able to trade on non-US exchanges that are registered with the CFTC as FBOTs. Starting now, the CFTC welcomes back Americans that want to trade efficiently and safely under CFTC regulations and opens US markets to the rest of the world. It’s just another example of how the CFTC will continue to deliver wins for President Trump as part of our crypto sprint.”

The acting chair signalled last week the US regulator’s intent to forge ahead with crypto reforms by starting the CFTC’s latest sprint.