CFTC broadens relief for passive crypto trading software

6.6 Regulation

Sep 17, 2026

CFTC expands no-action relief for passive crypto trading software, letting providers access regulated derivatives markets without broker registration if criteria are met. Relief excludes those facing criminal charges.

The Commodity Futures Trading Commission (CFTC) has expanded its no-action relief for providers of passive crypto trading software. This move allows these firms to offer access to regulated derivatives markets without the need to register as introducing brokers, provided they meet specific criteria. The updated relief, detailed in CFTC Staff Letter 26-25, builds on a previous exemption granted to Phantom Technologies and now covers a broader range of passive software providers. To qualify, the software must remain passive, not hold user assets, and avoid exercising discretion over orders. Additionally, users must transact exclusively on CFTC-registered exchanges. This regulatory update aims to clarify compliance requirements and foster innovation, enabling crypto wallets and developers to integrate derivatives trading features more easily. However, the relief does not extend to developers involved in criminal proceedings, such as those linked to Tornado Cash. This initiative demonstrates the CFTC’s ongoing efforts to integrate crypto into mainstream finance and signals a more progressive approach to regulating emerging financial technologies.