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CFTC advances crypto rules and grants relief to passive software providers
The Commodity Futures Trading Commission (CFTC) has taken significant steps to advance cryptocurrency regulation following the Senate's failure to pass the CLARITY Act. The agency has submitted two new proposed rules, titled 'Regulation Crypto Asset Transactions' and 'Regulation Crypto Asset Markets', to the White House Office of Information and Regulatory Affairs (OIRA) for review.
Simultaneously, the CFTC issued a no-action position providing regulatory relief to 'passive software' providers. This guidance, which expands upon a March decision involving Phantom Technologies, allows developers of non-custodial wallets and other applications to connect users to regulated derivatives markets and prediction markets without being required to register as introducing brokers or associated persons. To qualify for this relief, providers must meet strict conditions: they cannot hold custody of user assets, must not exercise discretion over trading decisions, and cannot generate buy or sell signals.
The regulatory movement coincided with a market rally, with Bitcoin reclaiming the $80,000 level. The CFTC's actions signal an intent to utilize existing authority to establish a digital asset framework while legislative efforts in Congress remain stalled.
Entities
Bitcoin · Brandon Millman · Cody Carbone · Commodity Futures Trading Commission · Digital Chamber · DraftKings · Kalshi · Office of Information and Regulatory Affairs · Phantom Technologies · United States Senate
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] The exemption applies to software that allows users to view market data, product offerings, and position information, and to submit orders directly to registered entities.
- [○ 1 SOURCE] Phantom CEO Brandon Millman stated that the decision is a win for the industry as it opens a path for other software providers. www.pymnts.com
- [○ 1 SOURCE] To qualify for the exemption, providers must adhere to conditions regarding user disclosures, conflicts of interest, fees, marketing, recordkeeping, and insolvency notices.
- [● 10 SOURCES] The CFTC issued a no-action letter exempting passive software providers from registering as introducing brokers or associated persons, provided they meet specific conditions. www.cryptobreaking.com · www.pymnts.com · www.nadanews.com · dev.tnonline.com.br · tribunadepetropolis.com.br · +4 more
- [● 10 SOURCES] This guidance expands upon a March no-action position previously granted to Phantom Technologies. www.cryptobreaking.com · www.pymnts.com · www.nadanews.com · dev.tnonline.com.br · tribunadepetropolis.com.br · +4 more
- [● 5 SOURCES] The Senate failed to advance the CLARITY Act with a 49-50 vote. www.tronweekly.com · www.crypto-news-flash.com · cryptobriefing.com · insidebitcoins.com · decrypt.co
- [● 5 SOURCES] The CFTC submitted two proposed crypto market rules to OIRA for review. bitnewsbot.com · www.tronweekly.com · www.crypto-news-flash.com · cryptobriefing.com · decrypt.co
- [● 5 SOURCES] The proposed rules are titled 'Regulation Crypto Asset Transactions' and 'Regulation Crypto Asset Markets'. bitnewsbot.com · www.tronweekly.com · www.crypto-news-flash.com · cryptobriefing.com · decrypt.co
- [● 2 SOURCES] Bitcoin price reclaimed $80,000 following the CFTC news. bitnewsbot.com · ethnews.com
- [● 7 SOURCES] Qualifying passive software providers must not hold custody of user assets. www.cryptobreaking.com · dev.tnonline.com.br · tribunadepetropolis.com.br · insidebitcoins.com · www.financial-news.co.uk · +2 more
- [● 3 SOURCES] Qualifying passive software providers must not exercise discretion over trades. www.cryptobreaking.com · insidebitcoins.com · coinpedia.org