CFTC Expands Crypto Software Relief as SEC Greenlights Tokenized Stock Trading

The US Commodity Futures Trading Commission issued a no-action position on Thursday expanding regulatory relief for "passive software" providers that connect users to CFTC-registered derivatives firms and exchanges. Under the guidance from the agency's Market Participants Division, qualifying providers and their personnel will not face enforcement for failing to register as introducing brokers or associated persons. To qualify, providers must limit their role in transactions and refrain from exercising discretion over users' orders — a framework that could make it easier for crypto wallets and decentralized applications to offer access to regulated perpetual contracts and prediction markets without obtaining CFTC registration.

On the same day, the Securities and Exchange Commission approved a temporary innovation exemption permitting limited trading of tokenized US stocks on certain onchain venues. Tokenized Securities Venues (TSVs) can now offer permissioned trading of tokenized National Market System stocks through automated market makers and liquidity pools, provided they meet requirements for transaction transparency, recordkeeping, and technology safeguards. SEC Commissioner Mark Uyeda noted that TSVs must publish USD-denominated data including prices, trade sizes, timestamps, pool addresses, and daily volumes. "The Innovation Exemption is designed to be controlled," Uyeda said, confirming that symbol and volume limits will apply and that the data collected will inform future SEC rulemaking on onchain securities trading.

Separately, US lawmakers advanced legislation to establish a Strategic Bitcoin Reserve, signaling continued federal interest in accumulating BTC as a sovereign asset. The bill's progress adds to a regulatory landscape that is rapidly shifting toward formal integration of digital assets and onchain trading infrastructure within traditional US financial frameworks.