The Commodity Futures Trading Commission’s Market Participants Division issued a no-action letter to crypto wallet provider Phantom Technologies, the agency announced Tuesday. Under specified conditions, the division said it will not recommend enforcement action against Phantom or its personnel for failing to register as a broker.
Phantom said the relief allows it to operate as a non-custodial interface that connects users to a registered exchange without taking on the regulatory responsibilities of an introducing broker. The company said it engaged proactively with the CFTC to clarify how a non-custodial interface can route users to regulated markets through a registered partner—seeking guidance before building rather than after—and to provide users safer, more reliable access to traditional financial markets.
The letter is one of the first to be issued under CFTC Chair Michael Selig since his Senate confirmation in December. Selig, who previously served as acting chair, and agency staff have granted similar no-action relief to other crypto platforms in recent years, including Polymarket and Binomial. Selig has also defended the CFTC’s asserted exclusive jurisdiction over prediction-market platforms such as Kalshi and Polymarket amid state lawsuits alleging gambling-law violations.
Last week, serving as the commission’s sole member, Selig proposed rulemaking that could alter or create regulations for event contracts on prediction markets and opened the proposal for public comment. Separately, the CFTC and the Securities and Exchange Commission signed a memorandum of understanding to reduce turf disputes and better coordinate oversight; both agencies said they will seek a “minimum effective dose” approach to regulation as they work toward greater harmony across overlapping markets.