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

Policy Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Phantom wins CFTC no-action relief, clearing path for crypto wallet access to regulated derivatives markets This means Phantom can act as a non-custodial interface connecting users to registered derivatives platforms, removing the need for broker registration under specific conditions. By Margaux Nijkerk | Edited by Nikhilesh De Mar 17, 2026, 3:06 p.m. Make us preferred on Google What to know : The CFTC said it won’t pursue enforcement against Phantom for acting as a non-custodial interface connecting users to registered derivatives platforms, removing the need for broker registration under specific conditions. Phantom calls the relief “first-of-its-kind,” enabling in-app access to regulated derivatives and event contracts while signaling a potential regulatory template for other crypto wallet providers. 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. Read: Prediction Markets Are Coming to Phantom's 20M User Via Kalshi Phantom CFTC Commodity Futures Trading Commission More For You Vietnam pushes local crypto exchanges as Hanoi moves to block offshore trading: Reuters By Francisco Rodrigues , AI Boost | Edited by Sheldon Reback 21 minutes ago The move aims to regulate the country's growing crypto market and restrict trading on foreign platforms. What to know : Vietnam is starting a pilot program for local cryptocurrency exchanges, with five companies cleared for the initial round, including affiliates of major banks and a business conglomerate. The move aims to regulate the country's growing crypto market and restrict trading on foreign platforms. The regulatory framework for crypto in Vietnam was recognized last year, and officials are seeking to balance innovation with oversight to control capital flows and speculation. Read full story Latest Crypto News Sam Altman's World teams up with Coinbase to prove there is a real person behind every AI transaction 6 minutes ago Vietnam pushes local crypto exchanges as Hanoi moves to block offshore trading: Reuters 21 minutes ago Robinhood’s new venture fund just snapped up stakes in Stripe and ElevenLabs 33 minutes ago 'Gensler and Biden were just better for crypto,' says Tally CEO as DAO governance platform shuts down 36 minutes ago Crypto trading firm GSR expands token advisory with $57 million in acquisitions 51 minutes ago U.S. Democrats target government officials gaming prediction markets on war action 1 hour ago Top Stories Mastercard agrees to buy stablecoin platform BVNK for up to $1.8 billion 2 hours ago Citigroup cuts BTC and ETH targets as U.S. crypto legislation stalls 2 hours ago U.S. regional banks building tokenized deposit network on ZKsync to rival stablecoins 1 hour ago Bitcoin consolidation seen with BTC remaining 'overbought' after pullback 4 hours ago PayPal expands its stablecoin into 70 markets 3 hours ago OpenSea delays highly anticipated token launch, citing challenging crypto market conditions 17 hours ago