CFTC Unveils New Guidance for Crypto Apps Offering Regulated Derivatives Access
The Commodity Futures Trading Commission (CFTC) has issued a no-action letter allowing passive software providers to offer regulated derivatives access without registering as introducing brokers. This move extends earlier relief granted to Phantom Technologies, whose self-custody wallet was cleared to connect users to regulated derivatives markets.
The CFTC's Market Participants Division said that passive software providers can limit their role to front-end software and meet a list of conditions to avoid registration as introducing brokers. The letter covers software that lets users view market data, submit orders for CFTC-regulated derivatives, including event contracts and perpetual contracts.
The relief is seen as providing needed clarity for software developers building tools that connect users to regulated derivatives markets. Industry advocates framed the CFTC's move as a more functional approach to regulation, focusing on what a technology provider actually does rather than treating software itself as a traditional financial intermediary.