CFTC Exempts Crypto Software Providers from Broker Registration
The US Commodity Futures Trading Commission (CFTC) has issued a no-action letter exempting eligible crypto and prediction markets software providers from broker registration requirements.
The relief applies to developers partnering with regulated platforms under certain conditions: they must maintain zero discretion over trades, never assume custody of users' assets, and not take volume-based dynamic commissions.
This development follows a precedent set by the CFTC in March when it granted a no-action position to Phantom Technologies, allowing them to partner with Kalshi prediction markets as a non-custodial passive interface provider without registering as an introducing broker.
Phantom CEO Brandon Millman praised the move, saying that it laid the groundwork for safe and compliant consumer financial access.