CFTC Exempts Crypto and Prediction Markets Software Providers from Broker Classification
The US Commodity Futures Trading Commission (CFTC) has issued a no-action letter to exempt eligible crypto and prediction markets software providers from broker registration requirements. This means that developers who partner with regulated platforms under certain conditions will not be considered brokers.
According to the announcement, the relief applies to developers who maintain zero discretion over trades, never assume custody of users' assets, and do not take volume-based dynamic commissions. The CFTC had set a precedent for this kind of developer regulation by granting a no-action position to Phantom Technologies in March.
The development has been welcomed by companies like Crypto.com and ProphetX, which have adopted similar models to expand their reach while operating within legal provisions. Brandon Millman, CEO of Phantom, praised the CFTC's decision, stating that it laid the groundwork for safe, compliant, and non-custodial consumer financial access.