Catenaa, Saturday, September 13, 202-The Commodity Futures Trading Commission’s (CFTC) Foreign Board of Trade (FBOT) advisory is unlikely to bring offshore cryptocurrency exchanges back to the US, according to Eli Cohen, general counsel at tokenization firm Centrifuge.
Cohen said FBOT rules, crafted for legacy financial markets, impose settlement, clearing, and regulatory obligations that crypto exchanges cannot meet.
Only highly regulated foreign entities, such as licensed futures commission (FCM) exchanges, are eligible, prompting many crypto firms to base operations in unregulated jurisdictions like Seychelles instead.
He stressed that permanent clarity for US crypto markets requires congressional legislation codifying rules. Reliance on FBOT guidance alone is insufficient, as regulatory requirements can shift with new administrations.
The CFTC’s “crypto sprint” initiative, part of the Trump administration’s push to make the US a global crypto leader, seeks to modernize market structure with 24/7 trading cycles and enhanced collaboration with the SEC.
Experts say these reforms may improve regulation but will not compel offshore platforms to operate under US oversight without legislation.
