CFTC Gives Crypto Wallets a Broker Bypass
The Commodity Futures Trading Commission (CFTC) has provided crypto wallet developers and similar firms with clarity on how to avoid broker registration requirements. The agency expanded no-action relief for passive software providers, including those that connect users to regulated derivatives markets.
No-action relief is a formal statement from the CFTC that it will not pursue enforcement action against firms operating within specific conditions. This means that wallet developers can now build products without registering as brokers, as long as they do not actively manage trades or take custody of user funds.
The CFTC's move follows the failure of the CLARITY Act in the Senate. The agency's leadership has stated that it intends to advance crypto-specific rules using its existing statutory authority, regardless of new legislation. This approach is echoed by SEC officials who have also taken actions to provide regulatory clarity for the industry.
Wallet developers have lobbied for clarity on broker registration requirements for several years, arguing that uncertainty has discouraged some US-based teams from building consumer derivatives access directly into their products.