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Regulatory relief for passive trading software just got broader, and the implications could reach well into the crypto wallet space.
The US Commodity Futures Trading Commission expanded its regulatory relief for passive trading software providers, a shift that could allow crypto wallets and other applications to offer access to regulated derivatives and prediction markets without registering as introducing brokers.
The question the expansion leaves open is where the agency draws the line between passive software and active intermediation. The case for the change rests on a real structural distinction.
Software that connects users to a regulated venue is not performing the same function as a broker who solicits trades or manages client relationships. Introducing broker registration exists to govern the latter.
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