CFTC Opens Broker Relief for Crypto Trading Apps After Senate Killed Trump's Clarity Bill

The CFTC Market Participants Division issued Staff Letter 26-25 on Thursday, 17 September 2026. Signed by MPD Director DJ Hennes, it is a conditional no-action position under Commission Regulation 140.99. Staff says it will not recommend enforcement against eligible passive software providers for failing to register as introducing brokers under Commodity Exchange Act Section 4d(g), or against relevant personnel as associated persons under Section 4k, if the stated conditions are met.

This is staff no-action. It is not an Act of Congress, not a permanent Commission rule, and not a finding that the Senate authorized the relief.

The letter says the position lasts until the Commission adopts a rule or guidance on IB registration for software providers. Staff also retains the authority to modify, suspend, or terminate it. The Block (Sarah Wynn, 17 September 2026) reported a source warning that a future commission can undo no-action letters.

Letter 26-25 expands the 17 March Phantom-only Letter 26-09 into a broadly available framework. A footnote in 26-25 says passive software providers are not limited to crypto-asset software. Covered software can display market data, promote products, introduce users to registered FCMs, IBs, or DCMs, and transmit orders. It cannot take custody, issue express buy or sell signals, or control routing and execution.

Users still onboard directly with the registered entity. Providers must meet disclosure, marketing, recordkeeping, and notice conditions, including a filing to MPDLetters@cftc.gov.

The letter landed hours after the SEC's Innovation Exemption for tokenized stock trading and after the Senate failed a procedural vote on the Clarity Act. Clarity's failure is the political backdrop, not a CFTC finding.

Solana Policy Institute GC Patrick Wilson told The Block it turns Phantom-specific relief into a framework others can build around. Digital Chamber CEO Cody Carbone said it removes ambiguity that chilled software innovation. Chair Michael Selig had floated cementing Phantom relief into rulemaking. That has not happened.

Related market-structure tape includes the pre-vote Clarity cloture calendar.

If you ship a front end that only passes orders to a registered FCM, IB, or DCM, decide this week whether to file the 26-25 notice with MPD or keep treating introducing-broker registration as the safer default.