CFTC Eases Rules on Crypto Trading Platforms
The Commodity Futures Trading Commission (CFTC) has made it easier for online platforms to offer cryptocurrency and prediction market trading. The agency issued a no-action letter that exempts certain software providers from registration requirements under specific conditions.
The CFTC's Market Participants Division stated that it will not recommend enforcement action against passive software providers that facilitate trading but never take custody of users' assets. This applies to the provision and marketing of software for trading with registered futures commission merchants, introducing brokers, and designated contract markets.
Until recently, companies soliciting or accepting trade orders would be required to register as brokers. However, in March, the CFTC issued a no-action letter in response to a request from Phantom Technologies, a developer of self-custodial crypto-asset wallet software.