CFTC Gives Green Light for Passive Software Providers on Derivatives
The US Commodity Futures Trading Commission (CFTC) has issued a no-action letter allowing passive software providers to access regulated derivatives markets without registering as introducing brokers or associated persons.
The relief applies to software that lets users view market data, product offerings, and position information and submit orders for CFTC-regulated derivatives, including event contracts and perpetual contracts.
This guidance extends earlier Phantom relief granted in March to Phantom Technologies, whose self-custody wallet was cleared to connect users to regulated derivatives markets without registering as a broker.
The move comes amidst the Senate's failed vote to advance the Digital Asset Market Clarity Act, and it follows SEC Chair Paul Atkins' statement that the SEC is prepared to write crypto rules if the legislation stalls.
Industry advocates have praised the CFTC letter for removing regulatory ambiguity for software developers building tools that connect users to regulated derivatives markets.