CFTC extends no-action relief to crypto software developers

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The US Commodity Futures Trading Commission (CFTC) has issued no-action relief for software developers that connect users to regulated derivatives markets, subject to certain conditions.

The position means the agency will not recommend enforcement action against qualifying developers for failing to register as introducing brokers. Developers must meet requirements including providing disclosures and maintaining relevant policies and procedures.

The move expands relief the CFTC granted to crypto wallet provider Phantom in March as it prepared to offer derivatives trading. The latest position could also apply to software beyond crypto-related applications, according to a footnote in the agency’s notice.