CFTC expands regulatory relief for passive trading software providers
The US regulator’s move could make it easier for crypto wallets and other apps to offer access to regulated derivatives and prediction markets without registering as introducing brokers.
The US regulator’s move could make it easier for crypto wallets and other apps to offer access to regulated derivatives and prediction markets without registering as introducing brokers.
The Commodity Futures Trading Commission (CFTC) has expanded regulatory relief for “passive software” providers that connect users to regulated derivatives firms and exchanges.
In a no-action position issued Thursday, the agency’s Market Participants Division said it would not recommend enforcement against qualifying providers or their personnel for failing to register as introducing brokers or associated persons when facilitating trading with CFTC-registered firms and exchanges.
The action extends a similar position granted to Phantom Technologies in March for its self-custodial crypto wallet software. The earlier letter allowed Phantom, subject to certain conditions, to provide and market software connecting users with registered futures brokers and exchanges without registering as an introducing broker.