CFTC plans to formally establish rules to confirm protections for non-custodial software developers

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BlockBeats News, May 6 — The Chairman of the U.S. Commodity Futures Trading Commission (CFTC), Michael Selig, stated at the Consensus Miami conference that they are planning to turn their friendly stance towards non-custodial software developers into formal rules. Previously, in March, the CFTC issued a no-action letter to crypto wallet provider Phantom, clearly indicating that self-custody wallet software developers who meet certain conditions do not need to register as brokers. Compared to temporary guidance, the CFTC prefers to quickly establish a regulatory stance through formal rulemaking to provide clear guidance for U.S. developers and promote the development and deployment of related software.

This move echoes a similar guidance issued by the SEC last month — the SEC pointed out that DeFi wallets and other interfaces are generally not considered brokers. Currently, both regulatory agencies are working to clarify their regulatory stance on software developers, which is beneficial for the development of non-custodial wallets and DeFi tools in the United States.

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