US Prop Firms Race Inside the CFTC Perimeter -- Tradeify Launches Regulated Brokerage 'Slay Mar

Three of the largest US prop firms are voluntarily entering CFTC regulation -- the biggest structural shift in funded trading since the industry began.

The US proprietary trading firm industry is undergoing a fundamental transformation. Three of the largest futures-focused prop firms -- Tradeify, Topstep, and MyFundedFutures -- are moving to become CFTC-regulated entities, ending the era of operating exclusively in the "simulated trading" gray zone that defined the industry for over a decade.

What's Happening

• Tradeify launched Slay Markets, a new retail brokerage operating under Tradeify Brokerage LLC, a registered introducing broker (IB) with the CFTC and NFA member. Tradeify signed an exclusive clearing agreement with NinjaTrader Clearing LLC (now owned by Kraken) to handle all trade execution and client funds.
• Topstep registered with the NFA as a Swap Firm and received approval to operate as a Commodity Trading Advisor (CTA) through Topstep Advisory LLC. The registration was completed in early May.
• MyFundedFutures is reportedly pursuing IB registration with the CFTC, following the same path Tradeify has already completed.

Why Now?

The timing is not accidental. Several forces are converging:

1. Post-My Forex Funds enforcement risk -- Although the CFTC ultimately dropped its lawsuit against My Forex Funds, the case sent shockwaves through the industry. Prop firms scrambled to add "simulated" language to their websites, but the legal uncertainty remains. Getting inside the CFTC perimeter eliminates this existential risk.
2. New CFTC oversight leadership -- DJ Hennes was recently appointed Director of the CFTC's Market Participants Division (MPD), which oversees all CFTC-regulated intermediaries. Having a new sheriff creates incentive to be compliant before enforcement priorities crystallize.
3. The MetaQuotes lesson -- In early 2024, MetaQuotes cracked down on prop firms onboarding US traders, nearly putting several platforms out of business overnight. Firms learned that depending on unregulated infrastructure creates existential vulnerability.
4. Competitive moat -- CFTC registration creates a barrier to entry that smaller, offshore prop firms cannot easily replicate. Regulated status becomes a trust signal for traders choosing between dozens of competing firms.

The Tradeify-NinjaTrader Pipeline

The most structurally significant development is Tradeify's exclusive clearing arrangement with NinjaTrader Clearing LLC. This creates a vertically integrated pipeline:

Prop evaluation -> Funded trading -> Regulated brokerage (Slay Markets) -> Live futures via CME

For the first time, a prop firm trader can progress from evaluation to live regulated futures trading within a single ecosystem. NinjaTrader provides clearing, execution, custody, and the trading platform. Tradeify provides the customer acquisition and trader development pipeline.

This is a direct challenge to the traditional broker model where evaluation firms and brokerages operate independently.

What This Means for Prop Firm Traders

Potential benefits:

• Segregated customer funds under NFA oversight
• Minimum capital requirements for the firm
• Regular NFA audits and compliance reviews
• Clear regulatory recourse if disputes arise
• A defined path from funded trading to live personal accounts

Potential concerns:

• Compliance costs may eventually flow through to traders via higher fees
• Regulated entities face constraints that could limit the flexibility prop firms are known for
• The line between "evaluation firm" and "broker" becomes blurred -- are traders customers or contractors?
• Topstep's Swap Firm registration coincides with an active lawsuit from trader Vincent McCrudden alleging the firm operates as an unregistered Commodity Pool Operator

The Bigger Picture

This is a one-way door. Once these firms operate as regulated intermediaries, they cannot easily return to the unregulated model. The industry is bifurcating: CFTC-regulated firms on one side, offshore and unregulated operators on the other.

For traders, the question becomes straightforward: do you want the protections that come with trading through a regulated entity, or do you prefer the flexibility (and risks) of the unregulated model?

The fact that the three largest US futures prop firms are all moving in the same direction at the same time suggests this is not optional -- it is the new baseline for operating in the US market.

Source: Finance Magnates (May 21, 2026); TradeInformer (May 19, 2026)

Discussion: Are you trading with any of these firms? Does CFTC regulation change how you evaluate which prop firm to use? Would you pay higher fees for the protections that come with a regulated entity?

Have a good weekend!

-- Fi

"The best edge is the one you can actually execute."