CFTC Issues No-Action Position for Trading Software Providers
The agency said qualifying apps and wallet providers will not face enforcement if they avoid discretion over customer orders.
- On Thursday, the Commodity Futures Trading Commission issued Staff Letter 26-25, allowing developers of 'passive software' to integrate regulated derivatives trading into self-custodial wallets without registering as brokers, broadening relief previously granted only to Phantom Technologies.
- The agency previously granted comparable relief to Phantom in March via Letter 26-09, prompting requests from other similarly situated developers seeking to provide access to regulated derivatives without formal broker registration.
- Staff Letter 26-25 permits distribution of front-end software for 'event contracts, perpetual contracts, and other Commission-regulated derivatives,' provided developers adhere to 10 conditions, including making trading venues 'jointly and severally liable' for compliance violations.
- Alongside the CFTC action, the Securities and Exchange Commission granted a five-year exemption for tokenized stock trading, following the Senate's rejection of the CLARITY Act with only 49 of the required 60 votes.
- This no-action position is 'not binding on the Commission' and remains effective only until final rules regarding software developer registration are enacted, as regulators continue shaping policy under existing authority.
12 Articles
12 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 Derivatives Rule Expands Passive Software Access In 2026 Positive
The U.S. Commodity Futures Trading Commission (CFTC) has expanded regulatory relief for developers of passive trading software, potentially making it easier for users to access regulated derivatives through wallets and other interfaces. The Market Participants Division said on September 17 that it would not recommend enforcement action over introducing-broker registration, subject to specified conditions.
CFTC extends crypto software broker exemption as CLARITY Act stalls
The CFTC’s Market Participants Division has extended no-action relief to providers of passive crypto-trading software, sparing them from registering as brokers, two days after the Senate blocked the CLARITY Act. The relief is set out in CFTC Staff Letter 26-25, signed by division director DJ Hennes. Division staff said they will not recommend enforcement against...
Coverage Details
Bias Distribution
- 75% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
