CFTC issues no-action position for software developers in crypto derivatives

CFTC gives software developers relief from broker registration

The U.S. Commodity Futures Trading Commission (CFTC) issued a “no-action position” on Thursday that applies to software developers who build crypto trading tools. In this position, the CFTC says it will not recommend enforcement action against these developers for failing to register as introducing brokers, if certain conditions are met.

Introducing brokers are firms or individuals who solicit or accept orders for futures trading. The no-action position means the agency will not pursue penalties for non-registration in specific circumstances.

What the CFTC’s no-action letter covers

• It expands an earlier no-action letter given to the crypto wallet provider Phantom in March 2026.
• The new position applies to software developers who act as a pipeline to designated contract markets, which are exchanges that offer futures trading.
• Developers must provide certain disclosures and adopt policies and procedures to qualify for the relief.
• A footnote in the CFTC’s announcement says the position could extend beyond “crypto asset-related software.”

Industry reaction and context

Patrick Wilson, general counsel at the Solana Policy Institute, told The Block the move turns what was previously Phantom-specific relief into a framework that other software providers can build around. He said it gives builders “more clarity about how they can connect users to regulated derivatives markets without being treated as introducing brokers.”

Cody Carbone, CEO of the Digital Chamber, said in a post on X that the move “removes a major regulatory ambiguity that's chilled software innovation in derivatives markets.”

Thursday’s announcement came just hours after the U.S. Securities and Exchange Commission (SEC) released its own “innovation exemption” for onchain trading of tokenized stocks. Both agencies have said they will proceed with their own regulatory agendas after the Senate failed in a procedural vote to advance the Clarity Act, which would have established a comprehensive federal framework for digital assets.

What is confirmed and what remains uncertain

Confirmed: The CFTC issued the no-action position on September 17, 2026, and it applies to software developers under the conditions described. The agency explicitly said it would not recommend enforcement action for non-registration as introducing brokers.

Not confirmed: The no-action letter’s potential expansion beyond crypto software is only mentioned in a footnote, so its full scope is not yet defined. Also, the CFTC has not yet turned this relief into formal rulemaking, despite a May statement from Chair Michael Selig that suggested such a step.

One crypto industry source, speaking on condition of anonymity, said no-action letters can be undone by a future administration. The source added that the more people who adopt the framework, the harder it may become to remove it later.

Why this matters for crypto developers

This relief gives software developers more regulatory clarity when they connect users to regulated derivatives markets. It reduces the risk of being treated as introducing brokers, which could encourage more innovation in crypto trading tools while the broader legislative effort remains stalled in Congress.

Sources

• The Block

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