The U.S. Commodity Futures Trading Commission (CFTC) said its Market Participants Division issued a no-action letter to crypto wallet provider Phantom Technologies, the agency announced Tuesday. Under specified conditions, the division will not recommend enforcement action against Phantom or its staff for failing to register as a broker.
Phantom said the relief lets the company act as a non-custodial interface that connects users to a registered exchange without assuming the regulatory obligations of an introducing broker. Phantom said it proactively engaged the CFTC to clarify how a non-custodial interface can provide access to regulated markets through a registered partner “rather than building first and seeking forgiveness later,” aiming to give users safer, more reliable access to traditional financial markets.
The letter is among the first issued under CFTC Chair Michael Selig since his Senate confirmation in December. Selig, who previously served as acting chair alongside Caroline Pham under the prior administration, and agency staff have issued no-action letters for other crypto platforms in recent years, including Polymarket and Binomial.
Selig has defended the CFTC’s “exclusive jurisdiction” over prediction market platforms such as Kalshi and Polymarket amid state lawsuits alleging gambling-law violations. Last week, as the sole CFTC commissioner, he proposed a rulemaking that could amend 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 (SEC) signed a memorandum of understanding intended to reduce regulatory turf disputes and coordinate oversight. Both agencies said they will pursue a “minimum effective dose” approach to regulation as they seek greater harmony in overseeing overlapping markets.
