CFTC Frees Non-Custodial Software Developers From Broker Rules
The Commodity Futures Trading Commission’s Market Participants Division issued a staff letter declaring a no-action position for the benefit of providers of passive software, the agency said in a Thursday (Sept. 17) press release. “The letter states that, subject to certain specified conditions, MPD will not recommend the commission take enforcement action against any such […] The post CFTC Frees…
The Commodity Futures Trading Commission (CFTC) has exempted non-custodial software developers from broker registration rules, according to a press release on Sept. 17. This decision, similar to one made in March, applies to providers of passive software that facilitate trading by users with registered futures commission merchants, introducing brokers, and designated contract markets.
The exemption covers the provision and marketing of software, as long as certain conditions are met. Phantom Technologies, a developer of self-custodial cryptocurrency asset wallet software, was the first beneficiary of this relief, allowing the company to connect users with regulated markets without holding their funds or making trade decisions.
Blockchain industry leaders welcomed the CFTC's expanded no-action position, citing it as a positive step for consumer protection and the growth of the crypto and prediction market trading sectors.
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