CFTC Loosens Rules for Crypto and Prediction Market Trading Platforms

The Commodity Futures Trading Commission (CFTC) has taken steps to expand trading in cryptocurrencies and prediction markets through online platforms. In a new guidance document, the CFTC exempted certain software providers from registration requirements, provided they partner with regulated entities and do not take custody of user assets. This move aims to encourage innovation in the space while ensuring that users' assets are protected.

The CFTC defines 'passive software' as providers that merely facilitate trading without taking control of users' funds. By exempting these providers from registration, the CFTC is creating a more streamlined process for online platforms to offer crypto and prediction market trading services.