CFTC Grants Conditional Broker Relief to Passive Software Firms

The Commodity Futures Trading Commission (CFTC) has granted conditional broker relief to qualifying passive software firms that connect users with regulated derivatives markets. The Market Participants Division announced this no-action position on September 17.

The relief applies only when providers meet ten specific requirements and stay within the activities covered by Staff Letter 26-25. Providers also cannot rely on the letter beyond its specified conduct.

Crypto developers may qualify for this relief, but their status still depends on the letter's requirements and the services they provide. Wallet developers and other digital-asset software companies may qualify when their products connect users with eligible derivatives markets.

The CFTC did not grant a broad exemption to all software companies. The agency made clear that crypto developers do not receive blanket protection. Industry groups welcomed this move as added regulatory clarity, removing uncertainty for software providers building interfaces connecting users with registered FCMs and DCMs.