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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…
Florida Sports Betting Opponents and Government Stakeholders Head to Oral Argument in Federal Appellate Court
December 15, 2022
Florida Sports Betting Opponents and Government Stakeholders Head to Oral Argument in Federal Appellate Court
By: Jacob Grubman
This week’s oral argument in West Flagler Associates, Ltd. v. Haaland is the latest step in the dispute over whether the State of Florida and the Seminole Tribe of Florida can offer online sports betting throughout the state and not just on tribal land.
Massachusetts Lessens Licensing Burden on Marketing Affiliates… For Now
December 1, 2022
Massachusetts Lessens Licensing Burden on Marketing Affiliates… For Now
By: Sara Dalsheim
On December 1, 2022, the Massachusetts Gaming Commission (“MGC”) held an Open Meeting to discuss a number of items ahead of the upcoming launch of retail sports wagering and later launch of online sports wagering. Of particular note was a topic brought up by the Director of the Investigations and Enforcement Bureau, Loretta Lillios, requesting that the MGC, at least temporarily, lessen the licensing requirements…
Four States Coordinate Against Metaverse Casino’s NFT Sales
October 25, 2022
Four States Coordinate Against Metaverse Casino’s NFT Sales
By: Jake Gray
On Thursday, October 20th, state securities regulators from Alabama, Kentucky, New Jersey, and Texas filed coordinated enforcement actions to stop sales of non-fungible tokens (“NFTs”) by an organization in the country of Georgia. The actions accuse Slotie NFT (“Slotie”) of “illegally and fraudulently selling NFTs to raise capital relating to gaming in online and metaverse casinos” in like manner to the offer and sale of…
Maryland’s Diversity Plan Requirement for Sports Betting Licensees
September 2, 2022
Maryland’s Diversity Plan Requirement for Sports Betting Licensees
By: Sara Dalsheim
The road to the launch of legalized sports betting in Maryland has been long and winding. From the start Maryland has been keen on developing requirements for diversity inclusion in its sports betting operations. Today, the State looks to finalize a positive step in that direction by holding a vote to approve a new “Diversity Plan Requirement”. Put simply, the Plan instructs sports betting licensees…
States Rush to Protect Consumers From Cyber Threats as Gaming Legislation Moves Across All States
August 25, 2022
States Rush to Protect Consumers From Cyber Threats as Gaming Legislation Moves Across All States
By: Jake Gray
In the four years since the Supreme Court struck down the federal ban on sports betting, more than 36 states and the District of Columbia have launched legal sports betting markets, with more than half of legalized states offering online and mobile options. [1] In most markets that offer online and mobile sports betting, the offerings are responsible for more than 70% of the total…
