On August 28, 2025, the U.S. Commodity Futures Trading Commission (CFTC) issued an advisory allowing foreign exchanges registered as Foreign Boards of Trade (FBOTs) to serve U.S. customers.
CFTC Advisory and Its Implications
CFTC has issued a clear advisory allowing registered foreign exchanges as FBOTs to legally serve U.S. customers. This initiative aims to address previous regulatory barriers without introducing new policies.
Impact on the Cryptocurrency Market
The advisory potentially reopens the U.S. market to international platforms trading assets like BTC and ETH. Regulatory clarity is expected to facilitate increased trading activity, providing participants access to a wider range of global platforms. However, it will take time to observe any significant liquidity or valuation changes.
Historical Context and Discussion
The CFTC's approach dates back to the 1990s, permitting Americans to engage in non-U.S. exchanges. This recent advisory reaffirms existing practices and provides assurance amid a shifting regulatory environment. Kraken analyst Alex Burgess highlights that the advisory could impact market dynamics, though significant changes depend on whether major exchanges pursue FBOT status.
The CFTC’s advisory offers regulatory clarity, creating opportunities for increased activity in the cryptocurrency market. The effects of these changes will be observed in the long term.
