CFTC Exempts Passive Software Providers From Broker Registration Requirements
The US Commodity Futures Trading Commission (CFTC) has granted conditional relief to qualifying passive software providers, exempting them from introducing broker registration requirements under certain conditions. This move is part of a broader effort by the CFTC to clarify regulatory boundaries for the crypto industry.
On September 17, the CFTC's Market Participants Division issued a no-action position that staff will not recommend enforcement against eligible providers who fail to register as introducing brokers. The relief applies only to software facilitating user trading with regulated futures intermediaries and designated contract markets.
This development builds on earlier relief granted to Phantom Technologies in March, which proposed connecting users with registered futures firms and designated contract markets through self-custodial crypto asset wallet software.