XRP Just Got A CFTC Win

Crypto pundit Levi Rietveld just drew the community’s attention to a major development. On September 17, the CFTC issued Staff Letter 26-25, extending no-action relief to all passive software providers connecting users to regulated derivatives markets. Rietveld’s excitement is warranted.

The CFTC’s Latest Action

Until now, the CFTC’s protection for passive software developers applied only to Phantom Technologies, which received Staff Letter 26-09 in March. This new letter changed that.

Any developer building passive front-end software that routes users to regulated derivatives markets can now operate without registering as an introducing broker, provided they meet specific conditions.

The conditions include not holding or controlling customer funds, not exercising discretion over the routing or execution of particular orders, and not providing affirmative trading instructions or signals.

Passive software providers must also disclose conflicts of interest and maintain required records. The relief covers event contracts, perpetual contracts, and other CFTC-regulated derivatives.

Why XRP Holders Are Paying Attention

This matters for XRP because the letter signals a CFTC posture that treats software developers as technology providers, not financial intermediaries. That distinction reduces compliance risk for developers building on or integrating XRP-based tools into derivatives-facing products. Rietveld told his audience this “provides exactly what every XRP holder has been dreaming of.”

The CFTC issued the letter as a self-initiated action. It listed the CFTC itself as the requester, meaning this was not a response to a single company’s petition. That signals the agency is proactively moving to provide industry-wide clarity without waiting for Congress.

The CLARITY Act Is Not the Only Path

The CLARITY Act failed its Senate cloture vote on September 15, falling short of the 60 votes needed to advance. Not a single Democrat voted to proceed. Rietveld dismissed the CLARITY Act entirely.

His point has merit at the regulatory level. CFTC Chair Michael Selig has stated publicly that the CFTC and SEC will work together to provide clear rules for the industry. This move is a major step in fulfilling that promise.

Many in the crypto industry share skepticism about Democratic negotiating intentions. Some Democrats have shown intent to continue talks on the CLARITY Act, but many market participants are skeptical.

What Comes Next?

The no-action relief stays in effect until the CFTC finalizes formal rules. Selig has notified staff to prepare that rulemaking. For now, developers have a clear, workable standard. The CFTC is moving. The question is how fast the formal rules follow.