CFTC expands regulatory relief for passive trading software providers
The CFTC expanded no-action relief for “passive software” providers that connect users to CFTC-registered derivatives firms and exchanges. Qualifying providers and their personnel will not face enforcement for failing to register as introducing brokers or associated persons, as long as they stay within limits that bar discretion over user orders and keep a limited role in transactions. The move broadens a March relief letter for Phantom’s self-custodial wallet and could help crypto wallets and similar apps offer access to regulated derivatives, including perpetual contracts and prediction markets, without becoming regulated brokers themselves. The decision comes right after the CLARITY Act stalled in the Senate and after CFTC and SEC leadership said they would keep advancing crypto rules using existing authority. The SEC also issued a temporary exemption for limited onchain trading of tokenized U.S. stocks.
