CFTC Issues No-Action Position for Trading Software Providers
The relief now covers qualifying wallets and apps that route orders to registered venues, with 10 conditions and joint-liability undertakings required.
- On Thursday, the Commodity Futures Trading Commission's Market Participants Division issued a no-action position allowing providers of "passive software" to facilitate regulated derivatives trading in self-custodial wallets without registering as introducing brokers.
- This decision extends relief previously granted in March to Phantom Technologies in Staff Letter 26-09, as the agency expanded the position after hearing from other similarly situated providers seeking similar relief.
- The letter attaches 10 conditions, including a requirement that trading venues sign an undertaking making them "jointly and severally liable" for provider violations, while providers cannot hold user assets or exercise routing discretion.
- Alongside the CFTC's action, the Securities and Exchange Commission approved a temporary exemption allowing platforms to facilitate limited onchain trading of tokenized US stocks, with Exchange Commission Chair Paul Atkins stating the agency would act "with or without legislation."
- Following the CLARITY Act's failure in the Senate with 49 votes, short of the 60 needed, CFTC Chair Michael Selig said the agency is "locked in" to ship rules for the new frontier of finance.
21 Articles
21 Articles
Wallets Can Offer Regulated Perps Without a Broker License, CFTC Staff Says
The relief Phantom won in March is now available to any provider of "passive software" that meets the letter's conditions. One of them requires every registered venue or broker it plugs into to sign an undertaking accepting joint liability for what the software does.
Cointelegraph
The New York LedgerCFTC Issues No-Action Position for Trading Software Providers
The CFTC expanded its no-action position for passive software providers, potentially making it easier for crypto apps to offer access to regulated derivatives and prediction markets.
CFTC Frees Crypto Wallet and DeFi App Developers From Broker Rules
The CFTC's Market Participants Division extended its passive-software no-action relief from Phantom Technologies alone to any wallet, DeFi interface, or app that routes trades to regulated futures, perpetuals, and prediction markets. The relief, issued as Staff Letter 26-25 on September 17, holds until the Commission finalizes formal rulemaking.
CFTC Opens a Conditional Route for Crypto Wallets to Offer Derivatives Trading
U.S. derivatives regulators have given crypto wallets and other trading apps a conditional route to offer futures and prediction-market contracts without registering as introducing brokers. The Commodity Futures Trading Commission’s Market Participants Division issued Staff Letter 26-25 on Sept. 17. It extends relief first granted to the Phantom crypto wallet in March to any qualifying…
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