CFTC Gives Green Light to Crypto Apps Connecting Users with Regulated Derivatives Markets

The Commodity Futures Trading Commission (CFTC) has issued a no-action position allowing software developers to connect users with regulated U.S. derivatives markets without becoming registered brokers themselves.

This new guidance, released on Thursday, covers applications that let users view market data, product offerings and position information, and submit orders for CFTC-regulated derivatives directly to registered entities.

The framework applies to products including perpetual contracts and prediction markets. To qualify, providers must satisfy conditions aimed at keeping their involvement in transactions limited, such as restrictions on exercising discretion over users' orders.