CFTC Broadens No-Action Relief for Passive Crypto Software Providers
The Commodity Futures Trading Commission (CFTC) has broadened its no-action relief for passive software providers, including developers of DeFi interfaces and self-custodial crypto wallet software. This move aims to reduce compliance risk and accelerate integration of crypto derivatives products.
The new relief extends an earlier letter issued in March 2026 to Phantom Technologies, a developer of software that enables trading in Commission-regulated derivatives products through self-custodial crypto asset wallet software. The CFTC has stated that it will not recommend enforcement action against providers or their personnel for failing to register as introducing brokers under Section 4d(g) of the Commodity Exchange Act.
The relief applies solely to the provision and marketing of software that facilitates trading by users with registered futures commission merchants, introducing brokers, and designated contract markets. This is a temporary measure, lasting until the effective date of CFTC rulemaking or guidance on how the introducing-broker registration requirement applies to software developers.
The move has been welcomed as it clarifies regulation for wallets and DeFi developers, thereby bolstering adoption in the crypto space.