The Market Participants Division of the US Commodity Futures Trading Commission has expanded regulatory relief for providers of passive trading software. Developers meeting specific criteria will not face sanctions for operating without registration as an introducing broker.
Eligible software may display market data, user positions, and product information, as well as route orders to registered market participants. This applies to event contracts, perpetual futures, and other regulated derivatives, whether as standalone products or integrated into apps like crypto wallets.
Developers are prohibited from holding or controlling user assets, generating direct buy or sell signals, or determining order routing and execution methods. Users must remain direct clients of the broker or trading venue, retaining the ability to interact with them independently.
Companies may advertise their services and receive transaction fees or revenue shares. In exchange, they must disclose conflicts of interest, warn users about risks, and adhere to CFTC and National Futures Association advertising standards, while agreeing to the regulator's jurisdiction.
These measures are temporary and remain in effect until the CFTC issues formal rules. The guidance follows a similar exemption granted to Phantom wallet in March and comes as regulators continue to develop frameworks for the crypto market without new legislation.
