Phantom wins CFTC no-action relief, clearing path for crypto wallet access to regulated derivatives markets

Phantom, a developer of self-custodial crypto wallets particularly popular in the Solana ecosystem, secured a no-action letter from the U.S. Commodity Futures Trading Commission (CFTC), allowing it to offer users access to certain regulated derivatives markets without registering as a broker.

In a statement Tuesday, the CFTC’s Market Participants Division said it would not recommend enforcement action against Phantom for failing to register as an introducing broker, provided the firm meets a set of conditions. The relief applies to Phantom’s software acting as a non-custodial interface that connects users directly with CFTC-registered entities, such as futures commission merchants and designated contract markets.

Phantom said in a blog post that the letter enables it to integrate access to regulated derivatives and event contracts directly in its app through registered partners, while ensuring users submit orders straight to exchanges. The company emphasized it does not custody customer funds or intermediate trades.

Phantom described the outcome as “first-of-its-kind” for this model and the result of proactive engagement with regulators. “Rather than building first and seeking forgiveness later, we took a different approach,” the team wrote in the blog post, adding that early dialogue with the CFTC helped clarify how non-custodial interfaces can operate within existing rules.

“A critical part of making crypto safe and easy to use is building financial products that are governed by clear, common-sense regulations. When warranted, engaging regulators early to find compliant pathways for these new products produces better outcomes for our users, for the industry, and for regulators themselves. This letter is proof of that,” said Phantom CEO Brandon Millman in a blog post.

“We’re grateful to the CFTC for working through a genuinely novel question with us, and we look forward to bringing more innovative products to consumers in a way that gives them confidence and sets the right precedent,” he added.

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