The U.S. Commodity Futures Trading Commission said on Sept. 18 that its Division of Market Participants has issued a no-action position for certain "passive software" providers. Under the guidance, staff will not recommend enforcement action if a provider has not registered as an introducing broker or associated person, provided specific conditions are met and the software only helps users trade with regulated futures commission merchants, introducing brokers, or designated contract markets. The covered platforms also cannot custody user assets or make trading decisions on a user’s behalf. The measure expands a case-specific arrangement granted in March this year to crypto wallet Phantom and extends the approach to other qualifying software providers. According to BlockBeats, industry participants said the move could make it easier for crypto wallets, websites, and other online platforms to connect users to regulated prediction markets and other CFTC-regulated products. The guidance is being viewed as supportive of product development and innovation in crypto market tools.
On Sept. 18, the U.S. Commodity Futures Trading Commission (CFTC) said its Division of Market Participants had issued a no-action position for providers of "passive software."
Under the notice, staff will not recommend enforcement action against a provider for failing to register as an introducing broker or an associated person, as long as certain conditions are met and the software only helps users trade with regulated futures commission merchants, introducing brokers, or designated contract markets.
The platforms covered by the position cannot custody user assets and cannot make trading decisions on behalf of users. The measure expands a case-specific arrangement issued in March this year for crypto wallet Phantom to other software providers that meet the stated conditions.
BlockBeats said industry participants believe the change could make it easier for crypto wallets, websites, and other online platforms to connect to regulated prediction markets and other CFTC-regulated products. The guidance is also being seen as supportive of development and innovation in crypto market tools.
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