The U.S. Commodity Futures Trading Commission (CFTC) has issued a No-Action Letter to well-known crypto wallet developer Phantom. This means the CFTC allows Phantom to integrate regulated derivatives trading interfaces within its wallet without requiring registration as an “introducing broker.”
(Background: CFTC Chair announces “New Crypto Regulation Blueprint”: partnering with SEC to launch Project Crypto, bringing clear rules for DeFi and prediction markets)
(Additional context: CFTC Chair Selig emphasizes focus: releasing crypto perpetual contracts in weeks, ending turf wars with SEC)
Table of Contents
Toggle
- Phantom recognized as a “Passive Software Interface”
- The exemption is not unconditional; three major compliance requirements announced
- Clarifying “Software Developer Responsibilities”: Non-custodial wallets receive good news
The line between decentralized finance (DeFi) and traditional regulated markets is experiencing a historic breakthrough. According to the latest regulatory updates, the U.S. Commodity Futures Trading Commission (CFTC) stated on Tuesday that it will not pursue enforcement actions requiring registration as a broker for the plan by crypto wallet provider Phantom to add “derivatives trading” features within its software.
Phantom Recognized as a “Passive Software Interface”
Previously, non-custodial wallets offering quotes or order entry for derivatives markets faced significant legal risks of being classified as “Introducing Brokers (IB).” However, in the latest No-Action Letter issued by the CFTC Market Participants Division, the agency provided clear room for flexibility.
CFTC staff clarified that Phantom’s planned functionality is merely providing a “front-end software interface” that allows users to send trading instructions directly to designated contract markets (DCMs) or registered intermediaries. In this model, Phantom is simply providing infrastructure and does not fall under strict broker registration requirements.
The Exemption Is Not Unconditional; Three Major Compliance Requirements Announced
While the CFTC granted this “green light,” the exemption comes with strict preconditions. Phantom must commit to the following obligations to protect consumers:
-
Disclosure of Risks and Conflicts of Interest: Clearly inform users about the high risks of derivatives trading and potential conflicts of interest.
-
Marketing Communications Compliance: Establish and maintain internal policies aligned with regulatory standards to govern marketing and PR activities.
-
Complete Recordkeeping: Properly retain all data and records related to its derivatives interface activities for inspection by authorities at any time.
Clarifying “Software Developer Responsibilities”: Non-custodial Wallets Receive Good News
The timing of this ruling is strategically significant. CFTC Chair Michael Selig recently stated that the agency is actively developing new regulatory guidelines to clarify when non-custodial software developers, such as digital wallets and DeFi applications, trigger registration requirements as intermediaries.
Industry analysts believe that Phantom’s successful exemption not only clears obstacles for expanding its compliant derivatives business but also sets a highly valuable precedent for the entire Web3 wallet sector. As the new U.S. administration and regulators gradually clarify the regulatory framework, we are likely to see more non-custodial wallets becoming “super traffic gateways” into traditional regulated derivatives markets.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
XRP Breakout Holds as XRPL Lending Vote Gains Momentum
XRP shows weekly strength, trading above EMAs after breaking from a descending wedge; XRPL advances XLS-65/66 lending upgrades with pooled vaults and fixed-term loans; derivatives rise in volume, open interest, and options activity.
Abstract: This report notes XRP's persistent weekly momentum and price strength above key moving averages following a breakout from a descending wedge. It covers XRPL validators voting on XLS-65 and XLS-66, enabling native lending, pooled liquidity vaults, and fixed-term loans to expand on-chain financial activity. It also reports rising derivatives participation, with higher trading volume, open interest, and a surge in options activity, suggesting increasing trader positioning for a continued breakout.
CryptoNewsLand4m ago
XRP Breakout Holds as XRPL Lending Vote Gains Momentum
XRP shows weekly strength, trading above EMAs after breaking from a descending wedge; XRPL advances XLS-65/66 lending upgrades with pooled vaults and fixed-term loans; derivatives rise in volume, open interest, and options activity.
Abstract: This report notes XRP's persistent weekly momentum and price strength above key moving averages following a breakout from a descending wedge. It covers XRPL validators voting on XLS-65 and XLS-66, enabling native lending, pooled liquidity vaults, and fixed-term loans to expand on-chain financial activity. It also reports rising derivatives participation, with higher trading volume, open interest, and a surge in options activity, suggesting increasing trader positioning for a continued breakout.
CryptoNewsLand4m ago
Aave Founder Stani: Team Advancing Multiple Solutions, Recovered $70M in ETH
Gate News message, April 22 — Aave founder Stani said the team has been actively advancing event resolution in recent days, with the primary focus on protecting user interests and ensuring orderly market recovery. According to Stani, the team is working with multiple partners to advance several solu
GateNews49m ago
Input Output Global Requests 62.1M ADA for Cardano Upgrades, Leios Mainnet Launch Targeted by Year-End
Gate News message, April 22 — Input Output Global, the core development company behind Cardano, has submitted nine proposals to the Cardano Treasury for 2026, requesting funding approximately 50% lower than the previous year. IOG is requesting 62.1 million ADA (approximately $15.8 million) for
GateNews50m ago
OpenSea Launches Mobile Perpetuals Trading for Beta Users, Kicks Off 5-Day Trading Contest
Gate News message, April 22 — OpenSea has rolled out mobile perpetuals (Perps) trading functionality to select beta users and will launch a five-day trading contest beginning April 23 at 5 a.m. UTC+8. The competition is restricted to mobile beta testers, with all participants receiving an initial
GateNews1h ago
Cardano Developer Dave Launches DRep Treasury Analytics Platform
Cardano's Dave launches governance.cardano-visualisation.com to track DRep treasury spending against Net Change Limit, visualize ADA withdrawals, with wallet integration and Japanese support, promoting transparent governance and broader participation.
Abstract: This article reports on Cardano ecosystem developer Dave's launch of governance.cardano-visualisation.com, an analytics platform that tracks DRep treasury spending relative to the network's Net Change Limit. The tool visualizes ADA withdrawals approved by governance votes, helping stakeholders evaluate whether delegated representatives manage funds effectively. Features include wallet integration for real-time monitoring, and Japanese language support to broaden accessibility. Dave argues that transparent governance data enables participants to understand the financial implications of decisions and fosters stronger community participation. The project aligns with Cardano's emphasis on decentralized governance and transparency and invites user feedback to inform future updates and expand capabilities for more informed participation and oversight.
GateNews2h ago
