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

The CFTC just opened a door for crypto trading apps to skip broker registration, hours after the Senate killed Trump's Clarity bill.

The Market Participants Division issued Staff Letter 26-25 on Thursday, 17 September 2026, a conditional no-action position under Commission Regulation 140.99. Signed by MPD Director DJ Hennes, 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. A future commission can undo it.

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.

Letter 26-25 expands the 17 March Phantom-only Letter 26-09 into a broadly available framework. A footnote 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 [email protected].

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 said 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.

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