CFTC Grants Phantom Wallet Exemption From Registering as Introducing Broker
Key Takeaways
- CFTC issued a non-intervention stance toward Phantom Technologies Inc. on introducing broker registration.
- Agency would not recommend coercive measures for Phantom failing to register as introducing broker.
- Phantom Wallet's self-custodial trading features are tied to the exemption.
Regulatory Relief Granted
The CFTC has granted Phantom Technologies Inc. a significant regulatory exemption by publishing a non-intervention stance regarding its obligation to register as an introducing broker.
“The CFTC's Market Participants Division published on Monday a non-intervention stance with respect to Phantom Technologies Inc”
This decision represents the first formal relief provided by CFTC staff to a non-custodial wallet provider.
The relief addresses a long-standing regulatory question about whether software developers trigger securities registration requirements.
This comes one week after CFTC Chair Michael Selig publicly pledged to resolve the registration question for DeFi software developers.
The decision marks a concrete outcome of the agency's joint Project Crypto initiative with the SEC.
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