The Commodity Futures Trading Commission has issued a no-action position effective immediately for providers of passive software and for software developers building crypto trading tools, a move regulators say will reduce ambiguity around registration as introducing brokers.
Under Thursday's position, the CFTC said it would not recommend enforcement action against software developers who act as a pipeline to designated contract markets if they meet certain conditions, including providing disclosures and adopting appropriate policies and procedures. The guidance expands on a previous no-action letter issued to crypto wallet provider Phantom and may, according to a footnote in the agency's position, extend beyond crypto asset-related software.
Solana Policy Institute General Counsel Patrick Wilson called it "a significant step forward because it takes what was previously Phantom-specific relief and turns it into a framework that other software providers can build around." Digital Chamber CEO Cody Carbone said the move removes "a major regulatory ambiguity that's chilled software innovation in derivatives markets."
The announcement came just hours after the SEC released its innovation exemption for onchain trading of tokenized stocks, and after the Senate failed to advance the Clarity Act. Industry voices welcomed the clarity but noted that no-action letters can be undone by future commissions. CFTC Chair Michael Selig had previously hinted at cementing the Phantom no-action letter into rulemaking, though that has not yet occurred.
The broader crypto market remains subdued, but participants view the CFTC's proactive stance as potentially positive for compliance, innovation and future regulatory engagement.
