The U.S. Commodity Futures Trading Commission (CFTC) has expanded no-action relief for passive crypto trading software providers, allowing eligible developers to offer tools that connect users with regulated derivatives markets without registering as introducing brokers.
The relief also covers software that works through self-custodial crypto wallets, provided the providers meet specified conditions. The move broadens an earlier exemption granted to Phantom Technologies and creates a regulatory path for similar non-custodial software providers.
.@CFTC Staff Issues No-Action Position to Providers of Passive Software: https://t.co/irgUh9JejX
— CFTC (@CFTC) September 17, 2026
The CFTC’s Market Participants Division said it would not recommend enforcement against qualifying providers for failing to register as introducing brokers. Relevant personnel can also receive relief from associated-person registration requirements. The position applies to specified activities involving registered futures commission merchants, introducing brokers and designated contract markets.
The software covered by the relief must remain passive. Providers can build front-end interfaces that allow users to view market and position information, review derivatives products and submit orders to registered market participants. They can also make the software available through self-custodial wallets.
However, the provider cannot decide how an order should be routed or executed. It cannot generate specific buy or sell signals, and it cannot take custody or control of customer assets. Users must transact directly with a regulated exchange or through a registered FCM or introducing broker.
The CFTC has also allowed eligible providers to market their software and relationships with registered market participants. They can promote the availability of specific derivatives contracts and introduce users to regulated firms. They may also receive compensation from those firms or charge users transaction-based fees, subject to the conditions.
Among the requirements, providers must disclose relationships and potential conflicts, provide risk disclosures, maintain appropriate records and comply with communication and marketing rules. They must also enter written agreements with registered counterparties and submit to CFTC jurisdiction.
The new position expands on Staff Letter 26-09 issued to Phantom Technologies in March. The latest Staff Letter 26-25 makes substantially similar relief available to other providers that meet the stated conditions.
The position is not a permanent rule adopted by the full commission. It can be modified, suspended or terminated, and could end if the CFTC later adopts rules or guidance covering software developers and introducing-broker registration.
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