The Market Participants Division of the U.S. Commodity Futures Trading Commission (CFTC) has relaxed regulations for providers of "passive" trading software. Under certain conditions, the agency will not recommend sanctions for activities conducted without registering as a broker-dealer.
.@CFTC Staff Issues No-Action Position to Providers of Passive Software: https://t.co/irgUh9JejX
— CFTC (@CFTC) September 17, 2026
These services can display market data and user positions, information about available products, and route orders to registered market participants. The relaxation applies to event contracts, perpetual futures, and other regulated derivatives.
The software can be offered as a standalone product or integrated into third-party applications, including cryptocurrency wallets. If integrated, developers must clearly separate operations related to regulated derivatives from the other functions of the application.
Importantly, this easing of regulations is not limited to cryptocurrency services.
No Control Over Transactions
Developers of such software are prohibited from holding or controlling user assets, generating direct buy or sell signals, or determining the routing and execution of orders themselves. Orders must be sent directly to registered market participants.
This means that users retain their status as direct clients of the broker or trading venue and can interact with them without a middleman application.
Developers are allowed to promote their services and the derivatives available through them, as well as earn a share of partner revenues or transaction fees.
In return, companies must disclose potential conflicts of interest and fee structures, inform users about risks, and comply with advertising regulations set by the CFTC and the National Futures Association. Services are also required to keep records of such activities and agree to the regulator's jurisdiction.
Background
In March, the CFTC provided a similar easing for the wallet developer Phantom. Following this, other companies and their legal advisors approached the regulator requesting similar conditions.
These new measures are temporary, remaining in effect until the agency issues its own rules for developers. The MPD specifically noted that this opinion is only from the division and is not binding on the Commission itself, and it can be revoked at any time.
The announcement came just two days after the failure of the CLARITY Act in the Senate. CFTC Chairman Michael Selinger and SEC Chair Gary Gensler stated that they would continue to draft rules for the cryptocurrency market without new legislation.
On the same day, September 17, the SEC approved a five-year exemption for on-chain trading of tokenized stocks.
In June, U.S. regulators proposed to review rules for crypto derivatives, seeking public input on the definitions of swaps and other derivative instruments, including perpetual futures and prediction market contracts.