CFTC expands no-action relief for passive software providers in derivatives trading

The CFTC has expanded its 'no-action' position from a previous Phantom Technologies-specific case to all qualifying 'passive software providers.' This allows crypto wallets and software developers to act as gateways for users to trade CFTC-regulated derivatives without registering as Introducing Brokers (IBs). Providers must meet 10 conditions, including risk disclosure and joint liability with regulated institutions, and cannot hold user assets or determine trade execution.