CFTC Draws a No-Custody Line for Trading Software

The Commodity Futures Trading Commission issued new guidance on September 17 that could widen online access to cryptocurrency and prediction-market trading by exempting certain software providers from broker-registration requirements. The agency said passive software providers partnering with regulated entities will not face enforcement penalties for failing to register as brokers, provided they never take custody of a user’s assets. That single condition – no custody, ever – is the hinge the wh