According to The Block, CFTC Chair Michael Selig stated on Tuesday at CoinDesk’s Consensus Miami conference that the CFTC plans to formally codify its previous stance of protecting non-custodial software developers into regulation. In March, the CFTC issued a no-action letter to the crypto wallet provider Phantom, clarifying that self-custody wallet software developers meeting specific conditions do not need to register as brokers. Selig said the CFTC will move swiftly to finalize the rulemaking to provide clear guidance for companies developing and offering software in the United States.
CFTC Plans to Formalize Protections for Non-Custodial Wallet Developers
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Summary
CFTC Chair Michael Selig announced at Consensus Miami that the agency is working to formalize protections for non-custodial wallet developers. In March, the CFTC issued a no-action letter to Phantom, stating that developers of self-custody wallets meeting specific conditions do not need to register as brokers. Selig emphasized the need to accelerate the rulemaking process to provide clear guidance for U.S.-based firms developing such tools. This move aligns with broader efforts to clarify regulatory frameworks surrounding blockchain consensus mechanisms, including the Nakamoto consensus model.
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