CFTC Expands Regulatory Relief for Passive Trading Software Providers

The Commodity Futures Trading Commission (CFTC) has taken steps to ease regulatory requirements for 'passive software' providers that connect users to regulated derivatives firms and exchanges.

In a no-action position issued Thursday, the agency's Market Participants Division stated it would not recommend enforcement against qualifying providers or their personnel for failing to register as introducing brokers or associated persons when facilitating trading with CFTC-registered firms and exchanges.

This move could make it easier for crypto wallets and other apps to offer access to regulated derivatives, including perpetual contracts and prediction markets, without becoming CFTC-regulated introducing brokers themselves.