CFTC issues no-action relief for passive software providers

The CFTC's Division of Market Participants (MPD) has issued a no-action letter regarding passive software providers. Under specific conditions, the MPD will not recommend enforcement action against software providers for failing to register as introducing brokers. The relief applies to the provision and marketing of software that connects users to registered futures commission merchants, introducing brokers, and designated contract markets. Industry observers suggest this move provides regulatory clarity for software developers building tools for the crypto market.