Eli Cohen, general counsel of Centrifuge, a real-world asset (RWA) tokenization company, argues that the recent CFTC guidance on offshore exchanges serving US residents under the FBOT framework won’t lead to their return to the US market. According to Cohen, the regulations and requirements designed for traditional financial systems aren’t compatible with the crypto exchange environment and will pose significant challenges. He further explains that the FBOT framework only permits licensed futures commission merchants (FCMs) – broker-dealers specializing in futures contracts – or similar entities to apply. Therefore, the majority of exchanges are unlikely to qualify due to their inherent lack of regulatory alignment. Many have instead established businesses in jurisdictions like Seychelles for better regulatory flexibility.