The U.S. Commodity Futures Trading Commission issued a no-action position Sept. 17, 2026, establishing standardized criteria for "passive software" providers to connect users with CFTC-registered derivatives venues without registering as introducing brokers.
The relief applies to applications and non-custodial wallets that route trades to regulated exchanges and brokers offering perpetual contracts and prediction markets. The critical constraint: the software cannot exercise discretion over trading decisions or steer user orders.
The framework rests on a functional distinction. Qualifying providers must operate as neutral routing mechanisms only—no active management, no advice, no order execution on behalf of users. Any discretionary activity triggers the requirement for full broker registration.
This codifies a relief first granted to Phantom Technologies in March. That letter permitted Phantom's self-custodial wallet to connect users to registered futures brokers without requiring registration. The CFTC's Sept. 17 move generalizes those conditions into a repeatable standard rather than a one-off comfort letter.
The shift reduces regulatory friction for developers. Instead of seeking bespoke no-action letters for each new integration, application builders can assess their products against published criteria and proceed without pre-approval—provided they stay within the passive software boundaries.
The stringency of the conditions is the key limiting factor. Software that begins to exercise discretion, offer advice, manage orders, or function as a de facto intermediary falls outside the framework and must register as a broker or introducing broker. The CFTC's enforcement focus remains on preventing unregistered entities from performing intermediary functions.
