CFTC to codify protections for non-custodial crypto developers

The CFTC will formalize protections for non-custodial crypto software developers, aiming to provide clear rules and regulatory certainty for self-custodial wallet providers in the U.S.

The Commodity Futures Trading Commission (CFTC) is moving to formalize protections for non-custodial crypto software developers, particularly those offering self-custodial wallet solutions. This initiative follows the agency’s March no-action letter for Phantom Technologies, which clarified that developers meeting specific criteria would not be required to register as brokers. CFTC Chair Michael Selig announced at Consensus Miami that the agency plans to codify this position into official regulations. This shift from case-by-case guidance to comprehensive rulemaking aims to provide clear, lasting guidance for software developers. By establishing these rules, the CFTC seeks to foster innovation in the crypto industry while ensuring compliance with federal law. The agency’s approach aligns with recent efforts by other regulators to clarify the regulatory landscape for crypto software developers.