CFTC shields passive software providers from broker registration

The U.S. Commodity Futures Trading Commission issued a no-action position for passive software providers, shielding developers who build trading tools from having to register as introducing brokers. The move is a key protection for DeFi and crypto software developers whose code facilitates trading without the developers themselves acting as intermediaries.

• The no-action relief covers developers who build trading tools but do not take on broker functions.
• It clarifies that simply providing software does not trigger introducing-broker registration obligations.
• The position is seen as supportive of open-source and DeFi tooling.