On Aug. 28, 2025, the Commodity Futures Trading Commission (CFTC) issued Staff Letter 25-27 — an advisory affirming that offshore derivatives exchanges, including those listing crypto products, can legally be accessed by US participants if they register as a foreign board of trade (FBOT) under Part 48.
This clarifies that “located in the U.S.” refers to physical presence, not legal domicile, and that these exchanges need not become designated contract markets (DCMs) to serve US traders.
This advisory builds on CFTC’s July 2024 final rule amendment to Regulation 48.4, which added introducing brokers (not just FCMs or CPOs/CTAs) as permissible intermediaries. That change has enabled more nuanced routing of US customer orders through global venues.
For Web3, decentralized trading, and crypto-native platforms, this represents a critical turning point. By lowering structural hurdles and codifying a clear on‑ramp through FBOT registration, the CFTC is effectively signaling that offshore platforms can integrate into US markets under defined conditions, without resorting to broad geographic blocking or being forced into full domestic exchange registration.
The agency is also positioning FBOT registration as a tool to shift trading activity into a more transparent and compliant environment, reducing the reliance on regulatory enforcement after the fact.
n recent months, the agency has rescinded old crypto‑specific staff advisories, including those on digital asset derivatives and clearing risks, and prioritized regulatory clarity over punitive action.
This dovetails with Pham’s vision of supporting responsible innovation, as seen in initiatives like the crypto CEO forum and digital asset sandbox ambitions.
This article was generated with the assistance of AI and reviewed by editor Jeffrey Albus before publication.
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Source: https://blockworks.co/news/cftc-fbot-registration
