The U.S. CFTC is seeking to further implement protective measures for non-custodial software developers

According to The Block, Michael Selig, chairman of the Commodity Futures Trading Commission (CFTC), stated that the CFTC is considering establishing rules to solidify its protective stance towards non-custodial software developers. In March of this year, the CFTC issued a no-action letter regarding the cryptocurrency wallet Phantom, indicating that it would not take enforcement action for not being registered as a broker and clarified that eligible self-custody wallet software developers do not need to register as brokers. Selig mentioned that the CFTC is seeking to formally incorporate this stance into rulemaking.

Additionally, Selig reiterated that prediction markets fall under the exclusive jurisdiction of the CFTC and that it will continue to sue states that violate federal jurisdiction. The CFTC has previously sued Wisconsin, Illinois, Arizona, Connecticut, and New York.