CFTC Expands No-Action Relief for Passive Crypto Software Developers
The Commodity Futures Trading Commission (CFTC) has issued a new no-action letter that broadens relief for passive crypto software providers. The move removes uncertainty over registration requirements for developers of self-custodial wallet and DeFi interfaces, which allow users to trade derivatives.
This change follows an earlier March 17th letter that only applied to Phantom Technologies, a single developer of such software. However, the new CFTC Staff Letter No. 26-25 makes equivalent relief available to all 'Passive Software Providers', subject to certain conditions.
The Commission will not recommend enforcement action against providers or their personnel for failing to register as an introducing broker under Section 4d(g) of the Commodity Exchange Act, or as an associated person of an introducing broker. This temporary relief lasts until a Commission rulemaking or guidance addresses how the introducing-broker registration requirement applies to software developers.