Federal regulators have just granted software creators who design digital asset trading tools some additional breathing space.
On Thursday, the Commodity Futures Trading Commission published a “no-action position” targeting software developers, stating that it will not pursue enforcement measures against them for failing to register as introducing brokers, provided specific requirements are fulfilled.
This development follows a no-action letter issued months earlier to digital wallet platform Phantom when the firm attempted to integrate derivatives trading capabilities into its application. Thursday’s directive broadens that previous letter to include software engineers who function as a bridge to designated contract markets, provided those creators implement specific disclosures and establish internal policies and procedures, among other conditions.
According to a footnote included in the regulator’s Thursday declaration, this no-action guidance could potentially extend beyond software strictly associated with crypto assets.
Patrick Wilson, general counsel for the Solana Policy Institute, shared with The Block that this represents a major advancement by transforming relief previously tailored exclusively to Phantom into a broader framework that alternative software providers can utilize. He added that this delivers greater transparency to builders regarding how they can link users to compliant derivatives platforms without facing classification as introducing brokers.
Cody Carbone, CEO of The Digital Chamber, also welcomed the latest regulatory approach from the CFTC.
Carbone expressed in an online post on X that this action eliminates significant regulatory uncertainty which previously hindered software innovation within derivatives sectors.
This update arrives mere hours after the SEC unveiled its eagerly awaited innovation exemption designed to accommodate onchain trading of tokenized equities. Both the SEC and the CFTC previously indicated they would proceed with their respective regulatory agendas following the Senate’s failure to pass the Clarity Act during a procedural vote, which would have established the first comprehensive federal-level regulation for the digital asset sector.
Market participants favored the proposed legislation because it would provide a degree of permanence that independent federal agencies cannot easily guarantee.
Nevertheless, a digital asset sector representative noted on Thursday that no-action directives can be reversed by a subsequent administration.
The source remarked that while the expansion and improvement are wonderful developments, there remains a certain level of vulnerability regarding potential reversals by a future commission under a different administration. They further noted their belief that a broader adoption rate and increased activity within this structure will make the framework more entrenched and difficult to withdraw later.
Back in May, CFTC Chairman Michael Selig hinted at formalizing the Phantom no-action directive into official rulemaking, though that transformation has not yet materialized.
Originally published at https://www.theblock.co/news/regulation/2026-09-17-regulators-keep-moving-crypto-cftc-follows-sec-developer-friendly-no-action-stance-415425.
