🔥 CFTC Opens Door for Crypto Apps to Offer Regulated Derivatives Access.
In the no-action letter, the agencys Market Participants Division said passive software providers can avoid registering as introducing brokers if they limit their role to front-end software and meet a list of conditions. That could matter for wallet developers and trading apps because broker registration can bring significant compliance requirements. The CFTC letter gives them a path to connect users to registered derivatives markets without acting as the intermediary handling the trade. The Division believes that a no-action position for all [passive software providers] on substantially the same terms as that provided to the software developer in Letter 26-09 is warranted, the CFTC letter said.
The letter covers software that lets users view market data, product offerings, and position information, and submit orders for CFTC-regulated derivatives, including event contracts and perpetual contracts, directly to registered entities. It extends relief first granted in March to Phantom Technologies, whose self-custody wallet was cleared to connect users to regulated derivatives markets without registering as a broker. Under Thursdays letter, staff will not recommend enforcement against passive software providers, or their relevant personnel, for failing to register as introducing brokers or associated persons if they stay within the covered activities and meet the letters conditions. Those conditions include user disclosures about relationships with registered entities, conflicts and fees; marketing policies; recordkeeping; insolvency or bankruptcy notices; and a filing agreeing to the terms.
❓ What's your take is this the start of a bigger move or just noise? Drop it below.
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#AICryptoIntegration #CryptoWallet #CryptoMarkets
In the no-action letter, the agencys Market Participants Division said passive software providers can avoid registering as introducing brokers if they limit their role to front-end software and meet a list of conditions. That could matter for wallet developers and trading apps because broker registration can bring significant compliance requirements. The CFTC letter gives them a path to connect users to registered derivatives markets without acting as the intermediary handling the trade. The Division believes that a no-action position for all [passive software providers] on substantially the same terms as that provided to the software developer in Letter 26-09 is warranted, the CFTC letter said.
The letter covers software that lets users view market data, product offerings, and position information, and submit orders for CFTC-regulated derivatives, including event contracts and perpetual contracts, directly to registered entities. It extends relief first granted in March to Phantom Technologies, whose self-custody wallet was cleared to connect users to regulated derivatives markets without registering as a broker. Under Thursdays letter, staff will not recommend enforcement against passive software providers, or their relevant personnel, for failing to register as introducing brokers or associated persons if they stay within the covered activities and meet the letters conditions. Those conditions include user disclosures about relationships with registered entities, conflicts and fees; marketing policies; recordkeeping; insolvency or bankruptcy notices; and a filing agreeing to the terms.
❓ What's your take is this the start of a bigger move or just noise? Drop it below.
$BTC $ETH
#AICryptoIntegration #CryptoWallet #CryptoMarkets