The Commodity Futures Trading Commission (CFTC) expanded its regulatory relief on Thursday for passive software providers that connect users with regulated derivatives firms and exchanges. This no-action position exempts qualifying providers from registering as introducing brokers, provided they meet strict conditions limiting their role in transactions, including restrictions on exercising discretion over users’ orders. The measure, which extends a previous relief granted to Phantom Technologies in March, could make it easier for crypto wallets and other applications to offer access to regulated derivatives, including perpetual contracts and prediction markets, without becoming CFTC-regulated entities. The decision comes two days after the CLARITY Act failed to advance in the US Senate, where a cloture motion received only 49 votes, falling short of the 60 needed to proceed to debate.
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