CFTC Grants No-Action Relief to Phantom for Derivatives Software

The U.S. Commodity Futures Trading Commission announced on March 17, 2026, that it would not recommend enforcement action against Phantom Technologies Inc. for failing to register as an introducing broker or for its staff to register as associated persons, provided the company adheres to specific conditions in offering software access to regulated derivatives markets.

Phantom, a provider of self-custodial wallet software popular among users of the Solana blockchain and other networks like Ethereum and Bitcoin, sought the relief to integrate a feature allowing users to access derivatives trading through its interface. The CFTC's Division of Market Oversight determined that Phantom's role would be limited to providing a frontend software tool, enabling users to connect directly with registered futures commission merchants, introducing brokers, or designated contract markets. Under this setup, Phantom does not execute trades, hold customer funds, or exercise discretion over order routing, positioning it as a passive facilitator rather than a financial intermediary.

The no-action position, issued by the CFTC's Market Participants Division, applies only to the narrowly defined...