CFTC grants 10-condition crypto software relief

• The CFTC has extended no-action relief to qualifying passive software providers.
• The relief covers software connecting users with registered derivatives firms and exchanges.
• Providers must meet 10 conditions and accept CFTC enforcement jurisdiction.

The CFTC has issued broader no-action relief for passive software providers supporting regulated derivatives trading.

The relief means qualifying developers will not face recommended enforcement for certain broker registration failures.

It covers software connecting users with registered futures commission merchants, introducing brokers and designated contract markets.

Users must remain customers of the regulated firm handling their trades, rather than becoming customers of the software provider.

The CFTC has set 10 conditions, including notice filing and consent to the agency’s enforcement jurisdiction.

The position has followed earlier relief for self-custodial crypto wallet software issued by the CFTC in March.

The relief does not create a blanket exemption, as developers must stay within the conditions and activities covered by the CFTC staff position.