CFTC won’t pursue broker registration action against Phantom over derivatives trading feature

The U.S. Commodity Futures Trading Commission (CFTC) announced via a staff no-action letter that it will not enforce introducing broker registration requirements against crypto wallet provider Phantom. This relief applies to Phantom's planned software interface that would allow users to access derivatives markets by viewing data, tracking positions, and submitting orders directly to registered exchanges or brokers. CFTC staff clarified that Phantom's role is limited to providing a front-end interface for transmitting instructions. The relief is conditional, requiring Phantom to implement disclosures regarding conflicts of interest and trading risks, maintain compliance policies, and keep relevant records. This decision occurs as regulators continue to determine how existing financial laws apply to crypto software developers, a broader issue seen in recent cases involving privacy tools.

(Source：The Block)