CFTC grants broader regulatory relief to passive trading software providers

VERA Brief

AI-generated. Grounded in the article and its cited sources.

The Commodity Futures Trading Commission (CFTC) has expanded regulatory relief for providers of passive trading software. This aims to reduce registration burdens and potentially allow applications like crypto wallets to offer access to regulated derivatives and prediction markets.

Key facts

• The CFTC has expanded regulatory relief for entities providing passive trading software.
• This action is intended to reduce registration burdens for certain firms.
• The updated guidance could allow cryptocurrency wallets to offer access to regulated derivatives and prediction markets without needing to register as introducing brokers.
• The relief is contingent on the software not exercising discretion or providing personalized trading advice.