The Commodity Futures Trading Commission (CFTC) is expanding regulatory relief for software providers that passively connect users with regulated derivatives firms and exchanges.
In a no-action position issued Thursday, the agency’s Market Participants Division said it would not recommend enforcement against qualifying providers or their personnel for failing to register as introducing brokers or associated persons.
The relief applies when these providers facilitate access to CFTC-registered firms and exchanges while keeping their role limited.
The decision could make it easier for crypto wallets and other applications to offer users access to regulated derivatives without becoming CFTC-regulated introducing brokers themselves.
However, providers must meet specific conditions designed to ensure that they remain passive to participants in transactions. One important restriction is that they cannot exercise discretion over users’ trading orders.
The expanded position builds similar relief granted to Phantom Technologies in March for its self-custodial crypto wallet software.
Wider Access to Regulated Crypto Derivatives
The latest CFTC action could have broader implications for how users access regulated digital-asset markets.
Under the earlier relief, Phantom was allowed, subject to certain conditions, to provide and market software that connects users with registered futures brokers and exchanges without registering as an introducing broker. The new position extends a similar approach to other qualifying passive software providers.
Phantom and the Hyperliquid Policy Center had also sought broader protections in July. They asked the CFTC to protect non-custodial wallet providers from introducing broker requirements and to clarify how existing rules apply to blockchain developers and regulated derivatives firms using onchain infrastructure.
The developments reflect growing efforts to connect blockchain-based applications with regulated financial markets while keeping the software providers’ responsibilities clearly defined.
Regulators Push Ahead After CLARITY Act Setback
The CFTC’s move comes just two days after the CLARITY Act failed to advance in the U.S. Senate. A cloture motion received 49 votes, falling short of the 60 votes required to move forward to debate.
Despite the legislative setback, regulators have indicated that they will continue working on digital-asset rules using their existing authority.
CFTC Chair Michael Selig said, “The CFTC is locked in and ready to ship its rules for the new frontier of finance,” while SEC Chair Paul Atkins said the SEC would act “with or without legislation” to provide regulatory certainty for digital assets.
The agencies followed those statements with further action Thursday. Alongside the CFTC’s no-action position, the SEC approved a temporary exemption allowing qualifying platforms to facilitate limited onchain trading of tokenized U.S. stocks through permissioned automated market makers and liquidity pools.
Combined, these actions show that U.S. regulators are continuing to develop their approach to digital assets even as Congress considers broader cryptocurrency legislation.
