CFTC Staff Extend No-Action Relief from Introducing Broker Registration to Passive Software Providers
Key Takeaways
- 01CFTC Staff Letter No. 26-25, issued on 17 September 2026, provides no-action relief from introducing broker and associated person registration for qualifying passive software providers.
- 02It covers software that facilitates users’ trading with registered FCMs, introducing brokers and designated contract markets, including event and perpetual contracts, and is not limited to crypto.
- 03The letter extends to similarly situated providers the relief that Staff Letter No. 26-09 gave a single wallet provider in March 2026.
- 04Conditions include conflict, fee and risk disclosures, direct onboarding with the registrant, recordkeeping, joint and several liability with each registrant, and a notice filing.
- 05It is a staff no-action position, not a Commission rule, and depends on the software remaining passive.
On 17 September 2026, the Market Participants Division (MPD) of the U.S. Commodity Futures Trading Commission (CFTC) issued Staff Letter No. 26-25. MPD will not recommend enforcement action against qualifying passive software providers, or their personnel, for failing to register as an introducing broker or as an associated person of an introducing broker.
The position applies to providing and marketing software that facilitates users’ trading with registered futures commission merchants, introducing brokers and designated contract markets. It is not limited to crypto-asset software and extends to products such as event contracts and perpetual contracts.
The letter builds on Staff Letter No. 26-09, which gave similar relief to a single wallet provider in March 2026, and makes it available to similarly situated providers. The software must remain passive, without discretion over users’ orders, and providers must meet conditions that include disclosure of conflicts of interest and fees, risk disclosure, direct onboarding of users with the registrant, recordkeeping, a joint and several liability undertaking with each registrant, and a notice filing to rely on the relief.
The letter is a staff position rather than a Commission rule. Wallet and front-end developers can rely on it only while they meet every condition; features that give the software discretion over orders would take it outside the relief.