Regulators keep moving on crypto: CFTC follows SEC with developer-friendly no-action stance
Software developers who build crypto trading tools just got some breathing room from the Commodity Futures Trading Commission.
The Commodity Futures Trading Commission has announced new rules to permit cryptocurrency and prediction market trading through online platforms. Certain software providers engaging in passive trading will not be required to register as brokers, unless they assume custody of user assets. Companies that solicited trade orders, sent them to brokers, and received compensation faced previous registration mandates.
In March, CFTC granted Phantom Technologies Inc. a no-action letter to waive these requirements. Phantom partnered with Kalshi to provide prediction trading to over 20 million crypto wallet holders. CEO Brandon Millman highlighted the company's commitment to creating platforms that protect consumers and partner with regulated entities.
Similar models have been embraced by Crypto.com and ProphetX, which operate CFTC-registered platforms. Industry expert Aaron Brogan suggests the guidance could enable prediction markets to be accessible almost anywhere. The CFTC stated the new guidance will remain in effect until a new agency rulemaking or guidance is issued. The announcement comes after a bipartisan group of senators blocked crypto market legislation.
CFTC Chairman Michael Selig and SEC Chairman Paul Atkins have committed to implementing digital asset industry rules without legislative interference.
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