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The CFTC’s recent advisory on offshore exchanges using the Foreign Board of Trade framework is unlikely to attract crypto platforms back to the U.S. Eli Cohen of Centrifuge argues the requirements are mismatched for digital assets. Legacy financial rules create impractical barriers for crypto firms.
- The FBOT framework's regulatory requirements, including settlement and clearing, are tailored for traditional finance and pose significant challenges for cryptocurrency exchanges.
- Only Licensed Futures Commission Merchants (FCMs) and highly regulated entities are eligible to apply under the FBOT framework, excluding many crypto platforms.
- Eli Cohen of Centrifuge asserts that the CFTC's advisory will not succeed in bringing offshore crypto exchanges back to the U.S. due to these structural mismatches.
📎 Related coverage from: cointelegraph.com
Related Tags: Commodity Futures Trading Commission (CFTC)