Crypto19 March, 20261 min read
CFTC Grants Phantom Wallet Exemption From Registering as Introducing Broker
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.
1 outlets told this the same way.
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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. 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.
“The CFTC's Market Participants Division published on Monday a non-intervention stance with respect to Phantom Technologies Inc., the developer of the self-custodial cryptocurrency wallet Phantom, indicating that it would not recommend coercive measures against the company for failing to register as an introducing broker in connection with certain software features related to trading.”
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.