Catenaa, Thursday, September 17, 2026- The Commodity Futures Trading Commission has broadened regulatory relief for software developers whose products connect users with regulated derivatives markets, expanding a framework previously granted to crypto wallet provider Phantom.
The CFTC’s Market Participants Division said in a letter that it would not recommend enforcement action against qualifying software providers for failing to register as introducing brokers or associated persons.
The relief applies when software facilitates trading between users and registered futures commission merchants, introducing brokers or designated contract markets.
Providers must meet conditions established by the CFTC, including requirements governing disclosures, policies and procedures.
The agency describes the covered products as passive software, meaning the technology facilitates access to regulated markets without performing functions that would otherwise require broker registration.
The position is broader than the Phantom-specific relief issued in March.
Phantom had asked the CFTC whether adding derivatives trading functionality to its self-custodial wallet would trigger introducing-broker registration requirements.
The agency granted conditional relief, allowing users to reach regulated derivatives markets through the wallet without requiring Phantom to register as an introducing broker for those activities.
The September framework makes similar treatment available to other qualifying software developers.
The CFTC indicated the position may also apply beyond crypto-related software, depending on whether providers satisfy its conditions.
The move addresses a long-running question over whether developers of noncustodial trading interfaces should be regulated in the same way as financial intermediaries that solicit or execute customer transactions.
However, a no-action position is not legislation or a permanent exemption.
It represents a staff decision not to recommend enforcement under specified circumstances and can potentially be changed or withdrawn by a future commission.
That distinction has become more important after the Senate failed September 15 to advance the CLARITY Act, which would establish a broader statutory framework for US digital asset markets.
Federal regulators have continued acting under existing authority while congressional legislation remains unresolved.
The SEC on September 17 separately introduced an Innovation Exemption allowing limited onchain trading of tokenized US-listed stocks through qualifying venues under temporary conditions.
Together, the actions show the SEC and CFTC using administrative authority to address parts of the digital asset market while Congress continues debating wider legislation.
For software developers, the CFTC framework gives clearer conditions for connecting users to regulated derivatives markets without automatically assuming the regulatory obligations of a traditional broker.
