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CFTC Opens the Door for Passive Software Providers in Derivatives Markets
FEATURED
September 28, 2026
CFTC Opens the Door for Passive Software Providers in Derivatives Markets
By: John Mikuta
In a new no-action letter, the Commodity Futures Trading Commission (“CFTC”) recently opened the door for software developers building software to facilitate trading in derivatives and futures. The CFTC’s Market Participants Division (“MPD”) issued a no-action position providing that it would not recommend bringing an enforcement action against a “passive software provider,” or “PSP”, for failing to register as an introducing broker (“IB”) or associated person of an IB under the Commodity Exchange Act (“CEA”).[1] As background, the CEA requires any person who, for compensation or profit, “is engaged in soliciting and in accepting orders” for futures and swaps to register as an IB.[2] Individuals performing that work for an IB must also register themselves as associated persons.[3] The CFTC…
Trust the Future You Trade: Lessons About Prediction Market Surveillance from the DACOM Summit
September 23, 2026
Trust the Future You Trade: Lessons About Prediction Market Surveillance from the DACOM Summit
By: John Mikuta
Prediction markets are no longer a niche offering confined to a small corner of the internet. The rapid growth of prediction markets has launched them into the mainstream as a meaningful part of the financial ecosystem. But with that growth comes many of the same market integrity and compliance challenges that more traditional financial markets have long encountered. Prediction markets have faced public scrutiny over…
High Wire Act
September 22, 2026
High Wire Act
By: James Trusty
The federal statute known as the Wire Act (18 U.S.C. § 1084) has had a tumultuous history. For many years, the DOJ interpreted it to include restrictions on both sporting events and non-sporting contests. That changed dramatically in 2011, when the Office of Legal Counsel (“OLC”), responding to states seeking clarification before establishing state lotteries, published an analysis of the Wire Act. After a thorough…
SAFEly symbolic?
October 14, 2024
SAFEly symbolic?
By: Sara Dalsheim
Last month two U.S. lawmakers, Rep. Paul Tonko D-N.Y. and Sen. Richard Blumenthal, D-Conn., introduced the Supporting Affordability and Fairness with Every Bet Act (i.e., the SAFE Bet Act).[1] The Act sought to implement federal minimum standards for all sports betting operators throughout the United States. The lawmakers seemingly put forth the bill because of concerns that citizens are being subject to too many sports…
When Sports Bettors Win, So Does the IRS
October 7, 2024
When Sports Bettors Win, So Does the IRS
By: Ifrah Law
Sports betting and adjacent industries have exploded in the United States. One area that continues to cause confusion is the taxation of these businesses – both for the companies and the individual players. For individual bettors, the IRS has clear rules on gambling income that predate the recent explosion of the sports betting industry. In short, the proceeds from a successful sports wager are taxable…
Illinois Expanding Regulations over Gaming Ads
October 2, 2024
Illinois Expanding Regulations over Gaming Ads
By: Jordan Briggs
The Illinois Gaming Board (“IGB”) adopted a new proposed uniform advertising regulation for sports wagering, casino gambling, and video gaming operators at its September meeting. Sports wagering is already subject to certain advertising and marketing restrictions, captured in “Rule 340.”[1] IGB proposed amendments to strengthen Rule 340 for sports wagering, and, for the first time, proposed to extend Rule 340 to casino gambling and video…
Maryland Regulators Pick Away at Latest Fantasy Offerings
September 6, 2024
Maryland Regulators Pick Away at Latest Fantasy Offerings
By: Robert Ward
On August 29, just as football fans were gearing up for the 2024-2025 NFL season, the Maryland State Lottery and Gaming Control Agency issued a new round of proposed regulations for both sports betting and daily fantasy sports. The proposed sports betting regulations address a wide range of topics, from geolocation and multifactor authentication to wind-down procedures for sportsbooks.[1] The proposed daily fantasy sports regulations,…
New Sports Betting Options as NFL Season Takes Off
August 27, 2024
New Sports Betting Options as NFL Season Takes Off
By: Jake Gray
The 2024-2025 NFL season is fast approaching—kickoff is set for Thursday night, September 5th, between the Baltimore Ravens and Kansas City Chiefs in which MVP quarterbacks Lamar Jackson and Patrick Mahomes will duel it out for the fifth time. This is their first matchup since the Chiefs knocked the Ravens out of the playoffs in the AFC Championship Game for the chance to play in…
