Phantom, a developer of self-custody crypto wallets particularly popular in the Solana ecosystem, has obtained a no-action letter from the US Commodity Futures Trading Commission (CFTC), allowing it to offer users access to certain regulated derivatives markets without registering as a broker.
In a statement on Tuesday, the CFTC’s Division of Market Participants said it would not recommend enforcement actions against Phantom for failing to register as an introducing broker, as long as the company meets a set of conditions. The relief applies to Phantom software that acts as a non-custodial interface that connects users directly to CFTC-registered entities, such as futures commission traders and designated contract markets.
Phantom said in a blog post that the charter allows it to integrate access to regulated derivatives and event contracts directly into its app through registered partners, while ensuring users submit orders directly to exchanges. The company emphasized that it does not custody client funds or intermediate operations.
Phantom described the result as “the first of its kind” for this model and the result of proactive engagement with regulators. “Rather than build first and seek forgiveness later, we took a different approach,” the team wrote in the blog post, adding that initial dialogue with the CFTC helped clarify how non-custodial interfaces can operate within existing rules.
“A critical part of making cryptocurrencies safe and easy to use is creating financial products that are governed by clear, common-sense regulations. Where warranted, engaging regulators early on to find compliance pathways for these new products produces better outcomes for our users, for the industry, and for the regulators themselves. This letter is proof of that,” Phantom CEO Brandon Millman said in a blog post.
“We are grateful to the CFTC for working with us on a genuinely novel question and 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 Reaching 20 Million Phantom Users Through Kalshi
