CFTC Grants Phantom Historic “No Action” Relief on Broker Registration Rules

Phantom, Solana’s most widely used wallet, now has federal regulatory cover to route users into regulated derivatives markets without needing to register as an introducing broker.

While the “No Action” Relief lets Phantom build new products without fear of persecution, the letter does not cover DeFi derivatives and prediction markets, two of Phantom’s biggest emerging verticals.

Why does the CFTC’s first-of-its-kind relief set a valuable precedent for other builders across the industry?

Phantom Receives First-of-its-Kind “No Action” Letter from CFTC

On March 17, the CFTC's Market Participants Division issued Staff Letter 26-09, effectively stating that Phantom is not required to register as an introducing broker when connecting users to regulated derivatives markets.

As a non-custodial interface, Phantom now theoretically has the regulatory clarity needed to develop products by which the average user can trade via CFTC-registered exchange partners. 

While crypto teams are best known for their ‘move fast and break things’ approach to innovation, Phantom claims to have taken a different approach. In a bid to give users secure ways to access regulated markets, Phantom General Counsel Kevin Jacobs posited that the company proactively engaged the CFTC, seeking a collaborative effort that would help establish a long-term framework.

"A critical part of making crypto safe and easy to use is building financial products that are governed by clear, common-sense regulations. When warranted, engaging regulators early to find compliant pathways for these new products produces better outcomes for our users, for the industry, and for regulators themselves. This letter is proof of that. We're grateful to the CFTC for working through a genuinely novel question with us, and we look forward to bringing more innovative products to consumers in a way that gives them confidence and sets the right precedent." - Brandon Millman, Phantom co-founder and CEO

Phantom co-founder and CEO Brandon Millman argues that the regulatory clarity the No Action Relief gives Phantom the “clear, common sense rules” the wallet needs to continue building “safe and easy to use” products.

DeFi Derivatives and Prediction Markets Not Covered

While the No Action relief issued to Phantom gives the company greater freedom to build products that connect users to regulated exchanges, the letter does not cover DeFi derivatives and prediction markets.

Ironically, these two verticals represent two of Phantom’s most promising emerging markets. Since introducing DeFi perps trading functionality in July 2025, over 124,000 wallets have traded onchain derivatives through the wallet, processing over $3.69B in volume.

Similarly, prediction markets have proved popular. Dune Analytics data suggests that over 26,700 wallets have interacted with Phantom’s DFlow-powered prediction markets.

The success of Phantom’s existing integrations with onchain derivatives markets demonstrates strong user appetite for these products. 

With the CFTC’s No Action Relief letter in hand, Phantom now has the regulatory freedom to integrate similar products from CFTC-registered partners into its application, further bolstering its product suite.

No Action Letter Sets Broader Precedent for Crypto Wallets

In the same way that the “No Action” letter issued to DoubleZero paved the way for DePIN projects to operate with greater regulatory clarity, the CFTC’s latest No Action Relief sets a valuable precedent for wallets across the crypto industry. 

With time, the CFTC’s stance on Phantom could open the floodgates to a much wider breadth of regulated derivative products in crypto wallets.

CFTC Chairman Micheal Selig argued that today’s letter marks the USA’s continued push to establish the nation as the “crypto capital of the world”, giving “long overdue clarity” to builders and developers across the country.

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