U.S. Regulator Expands Crypto Trading To Online Platforms
The Commodity Futures Trading Commission (CFTC) has expanded cryptocurrency and prediction market trading to online platforms by exempting certain software providers from registration requirements. The new guidance allows 'passive software' providers, which partner with regulated entities but do not take custody of user assets, to avoid enforcement penalties for failing to register as brokers. This move follows the rejection of industry-backed crypto legislation in the U.S. Senate and aims to promote innovation while maintaining regulatory oversight. Phantom Technologies was among the first beneficiaries after partnering with Kalshi to offer prediction market trading to its users. The CFTC's approach is expected to enable broader access to these markets through platforms like Crypto.com and Prophet. The development signals a shift in how crypto services are regulated, potentially increasing participation from online platforms without compromising compliance standards.
Topics: CFTC cryptocurrency online trading platforms prediction markets