The US Commodity Futures Trading Commission (CFTC) is moving to formalize protections for developers of non-custodial crypto software. The effort follows a “no-action letter” issued to Phantom wallet.
The policy aims to clarify that developers who write code for non-custodial wallets or DeFi protocols should not be treated as commodity dealers or required to register as intermediaries. This has significant implications for the crypto developer ecosystem.
Supporters argue that clear regulatory boundaries will encourage more developers to participate in crypto innovation without fear of retroactive enforcement. Critics worry it could weaken consumer protections.