The U.S. Commodity Futures Trading Commission (CFTC) announced on Thursday that it would allow passive software providers—which connect users with derivatives exchanges—to be exempt from regulation if they meet certain requirements.
In a no-action position released that day, the CFTC’s Market Participants Division stated that it would not take enforcement action against software providers that meet certain requirements, even if they are not registered as introducing brokers (IBs) or associated persons (APs).
This decision allows various applications, including cryptocurrency wallets, to offer access to regulated derivatives such as perpetual futures exchanges or prediction market platforms without registering as introducing brokers.
However, these applications must remain as passive infrastructure that simply connects users with services. They are prohibited from holding users’ assets or interfering with individual user orders.
Furthermore, when integrating connection features into these applications, developers must include clear indicators to help users distinguish whether they are engaging in trading of derivatives subject to CFTC regulation.