SEC · The Block
Regulators keep moving on crypto: CFTC follows SEC with developer-friendly no-action stance
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Software developers who build crypto trading tools got some breathing room from federal regulators.
Key facts
- The Digital Chamber CEO Cody Carbone also cheered the CFTC's latest stance
- In May, CFTC Chair Michael Selig alluded to cementing its Phantom no-action letter into rulemaking, but that hasn't come to fruition
- This is a significant step forward because it takes what was previously Phantom-specific relief and turns it into a framework that other software providers can build around," Solana Policy Institute
- This comes hours after the SEC released its long-anticipated " innovation exemption " to make room for the onchain trading of tokenized stocks
Summary
The Commodity Futures Trading Commission issued a "no-action position" for software developers on Thursday, saying it would not recommend enforcement action against them for not registering as introducing brokers if certain conditions are met. This comes months after the CFTC issued a no-action letter to crypto wallet provider Phantom as the company sought to add derivatives trading functionality to its software. The no-action letter could also expand beyond "crypto asset related software," according to a footnote in the agency's no-action position on Thursday. "This is a significant step forward because it takes what was previously Phantom-specific relief and turns it into a framework that other software providers can build around," Solana Policy Institute General Counsel Patrick Wilson told The Block.