CFTC Broadens No-Action Relief for Crypto Software Developers
The Commodity Futures Trading Commission (CFTC) has expanded its no-action relief for developers of passive crypto software. The move, announced in a September 17 press release, removes registration uncertainty for decentralized finance (DeFi) interfaces and crypto wallet software.
This expansion is the result of a March letter to Phantom Technologies, which was issued after the CFTC received inquiries from other providers and their counsel. The new no-action relief applies to 'Passive Software Providers' subject to certain conditions.
The CFTC will not recommend enforcement action against a provider or its personnel for failing to register as an introducing broker under Section 4d(g) of the Commodity Exchange Act, or as an associated person of an introducing broker. This relief is only available until the effective date of a Commission rulemaking or guidance that addresses how the introducing-broker registration requirement applies to software developers.