CFTC Expands Developer Relief with No-Action Position

The Commodity Futures Trading Commission (CFTC) has issued a 'no-action position' for software developers building crypto trading tools. This means they won't recommend enforcement action against developers who don't register as introducing brokers if certain conditions are met.

This move follows the SEC's recent 'innovation exemption' to allow on-chain trading of tokenized stocks. The CFTC's no-action position is an expansion of its previous relief for crypto wallet provider Phantom, which sought to add derivatives trading functionality to its software.

CFTC Chair Michael Selig hinted at cementing the Phantom no-action letter into rulemaking in May, but that hasn't happened yet. Industry experts see this as a step forward, giving developers more clarity on how to connect users to regulated derivatives markets without being treated as introducing brokers.