CFTC Grants Conditional Relief to Passive Software Firms Connecting Users with Regulated Derivatives Markets
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 the no-action position on September 17, stating that staff will not recommend enforcement against qualifying providers or relevant personnel for failing to register as introducing brokers or associated persons.
The relief applies only when providers meet 10 requirements and stay within the activities covered by Staff Letter 26-25. Providers also cannot rely on the letter beyond the conduct it covers, which remains narrow in scope.
Crypto developers may qualify for the relief when their tools fit the framework, but wallet developers and other digital-asset software companies are not automatically exempted.