CFTC exempts crypto wallet and prediction market software providers from broker rules
The Commodity Futures Trading Commission has issued an exemption removing crypto wallet providers and prediction markets software providers from broker classification. Prediction market operators including Crypto.com and ProphetX have adopted similar business models. Both platforms operate CFTC-registered venues. The exemption expands their legal reach without requiring full broker registration. The move follows a related CFTC exemption for passive software providers issued the prior day.
Prediction market platforms like Crypto.com and ProphetX can now embed wallet and software functions without triggering broker registration for their partners. That cuts compliance cost for each new distribution channel. The relief arrives as these same operators fight state gaming enforcement in Connecticut and face CFTC pressure to drop American-style moneyline odds.
Yesterday's passive-software exemption let Kalshi and Polymarket route order flow through unregistered apps; today's carveout adds wallet infrastructure to the exempt layer. Platforms gain two compatible federal exemptions in as many days, but neither has a formal rulemaking timeline. State attorneys general in Connecticut and Baltimore are already ordering sports contract halts. The federal patchwork keeps shifting beneath traders. Platforms that stack both exemptions fastest will set the integration standard rivals match.