Phantom, a developer of self-storage crypto wallets that is particularly popular in the Solana ecosystem, secured a no-action letter from the US Commodity Futures Trading Commission (CFTC) that allows 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 exemption applies to Phantom’s software, which acts as a non-custodial interface that connects users directly to CFTC-registered entities, such as futures commission dealers and designated contract markets.
Phantom said in a blog post that the letter allows it to integrate access to regulated derivatives and event contracts directly into its app through registered partners, while ensuring that users send orders directly to exchanges. The company stressed that it does not hold customer funds or brokers.
Phantom described the result as “first of its kind” for this model and the result of proactive engagement with regulators. “Instead of 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 work 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 will yield better outcomes for our users, for the industry and for the regulators themselves. This letter is proof of that,” said Phantom CEO Brandon Millman in a blog post.
“We are grateful to the CFTC for working through a truly novel issue 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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