CFTC Broadens Relief for Crypto Developers Amid Growing Regulatory Support
The Commodity Futures Trading Commission (CFTC) has expanded its regulatory relief for software developers in the crypto space. This move comes just hours after the SEC opened a path for tokenized stock trading.
The CFTC's Market Participants Division issued a no-action position for providers of passive trading software, allowing qualifying developers to facilitate access to regulated derivatives markets without registering as introducing brokers or associated persons.
This relief applies when software connects users with registered futures commission merchants, introducing brokers, and designated contract markets, subject to specified conditions. The move expands on the relief granted to Phantom Technologies in March, turning it into a framework that other software providers can build around.
Crypto-friendly measures are gaining traction after the CLARITY Act stalled in the Senate. The SEC's Innovation Exemption provides temporary, conditional relief for platforms seeking to facilitate on-chain trading of tokenized U.S. stocks. Under this framework, qualifying Tokenized Securities Venues can operate permissioned automated market makers and liquidity pools for tokenized National Market System stocks without being treated as exchanges.