CFTC Expands Crypto Trading Access Through Passive Online Software
The Commodity Futures Trading Commission expanded access to regulated crypto trading through online software on September 17. The agency said qualifying passive software providers can avoid introducing-broker registration under specified conditions. The relief applies when software connects users with registered futures commission merchants, introducing brokers, and designated contract markets.
The move broadens a policy first granted to self-custodial wallet provider Phantom in March. Qualifying platforms must remain passive, meaning they cannot take custody of customer assets or control trading decisions. The software can facilitate user access to regulated derivatives markets while the registered financial firms handle the regulated trading relationship.
The CFTC action could allow more wallets, trading applications, and other online platforms to integrate regulated crypto derivatives. The relief also covers certain event contracts and perpetual contracts. However, providers must satisfy conditions covering disclosures, conflicts, fees, marketing, and recordkeeping. The position remains subject to future CFTC rulemaking or guidance.
Why it matters
The decision could lower compliance barriers for online platforms offering regulated crypto trading access. It may also expand the number of consumer-facing applications connected to U.S. derivatives markets.
