The U.S. Commodity Futures Trading Commission (CFTC) has issued a “no-action” letter to Phantom Technologies, allowing the company to connect users to regulated futures markets without registering as a introducing broker. This letter applies only to the Phantom software wallet, which connects individual users with registered brokers, futures traders, and markets, but does not extend to DeFi derivatives or crypto prediction markets.
According to the CFTC, the “no-action” letter commits the agency not to take enforcement action against Phantom when the company is not registered as an introducing broker, though the agency may issue formal regulations in the future to replace this. CFTC Chairman Mike Selig emphasized that this decision provides important transparency for non-custodial wallet developers as the U.S. strengthens its position as a global crypto hub.
Phantom lawyer Kevin Jacobs stated that the company proactively worked with the CFTC to understand how a non-custodial interface like Phantom can provide access to regulated markets through registered partners without needing to register itself. Phantom highlighted that the company never touches customer funds, and this decision could serve as a model for other wallet providers seeking integration with regulated markets.
CEO Brandon Millman said, “A key part of making crypto safe and user-friendly is building financial products that comply with transparent and reasonable regulations. This letter demonstrates that proactive engagement with regulators benefits users, the industry, and the regulators themselves.”
Phantom commits to continuing the development of innovative products, complying with regulations, and prioritizing users, while emphasizing the importance of building self-custody crypto tools within a clear legal framework.
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