The Commodity Futures Trading Commission is considering writing rules to cement its stance on whether software developers should register as brokers with the agency, according to its Chair Michael Selig.
Just over a year into the job as CFTC chair, Selig is looking to further enshrine a friendlier crypto environment, particularly when it comes to protections for non-custodial software developers.
In March, the CFTC released a no-action letter that said it would not recommend an enforcement action against crypto wallet provider Phantom for failing to register as a broker. In it, the CFTC said software developers who meet certain conditions and provide self-custodial wallet software are not required to register as a broker, Selig said.
On Tuesday at the Consensus Miami conference hosted by CoinDesk, Selig said the agency is looking to cement that stance into rulemaking.
“As I said before, I prefer rulemaking, and so we’re going to work to codify that and get it in rules very soon,” Selig said. “But as a start, it’s kind of a crawl, walk, run. We want to get some clear guidance out there to help these firms start to develop and offer their software in the U.S.”
Both the CFTC and the Securities and Exchange Commission have taken steps to clarify their stances on the treatment of software developers. Last month, the SEC’s Division of Trading and Markets released a staff statement to delineate that interfaces, such as DeFi wallets, would generally not be considered brokers. That guidance was intended as an “interim step while the Commission continues to consider various regulatory issues.”
Federal fight
On Tuesday, Selig also reiterated that the nascent prediction markets sector falls under the exclusive remit of the CFTC, and stated that he will continue to sue states that are violating federal jurisdiction. Several states have attempted to ban prediction market for violating local gaming and gambling laws, particularly related to sports-related bets. So far, the CFTC has sued Wisconsin, Illinois, Arizona, Connecticut and New York over the issue.
“We’ll continue to bring lawsuits whenever we see these impinge on our authority,” Selig said.
© 2026 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Trade Crypto On Coinhub Exchange
Trade Crypto On Coinhub Exchange
Stay ahead of the market by turning news insights into trading opportunities. With Coinhub Exchange, you can seamlessly buy, sell, and manage your digital assets, all in one secure platform. Take advantage of real-time market insights, deep liquidity, and fast execution for your favorite cryptocurrencies. Don’t just read about it — trade crypto now!
Disclaimer
The content of this article shown by Coinhub News, powered by The Block, is for informational purposes only and should not be construed as financial, legal, tax, or investment advice. Coinhub News and its affiliates are not a licensed financial advisor, legal advisor, broker, or tax advisor, and ... should not be considered as professional advice or a recommendation to engage in any specific investment, legal decision, or financial transaction. Cryptocurrency markets are highly speculative and volatile. Readers should perform their own independent research and consult with a qualified professional before making any financial or legal decisions. The opinions expressed in this article are those of the author and do not necessarily represent the views or opinions of the Company of its affiliates. Additionally, the Company does not make any representations or warranties regarding the accuracy, timeliness, reliability, or completeness of any information in this article. By accessing this content, you acknowledge that any reliance on the information contained in this article is solely at your own risk. The Company is not responsible for any financial losses, legal disputes, or other damages that may arise from reliance on this content or from any investment or legal decisions based on the information provided. Investing in cryptocurrencies involves substantial risks, including the risk of losing your entire investment, and you should carefully consider whether it is appropriate for your circumstances.
Read more
