Phantom Secures CFTC No-Action Relief to Offer Derivatives Access

Phantom, the self-custodial crypto wallet with a strong following in the Solana ecosystem, has obtained a no-action letter from the U.S. Commodity Futures Trading Commission that allows it to serve as a gateway to regulated derivatives markets — a first for a non-custodial wallet provider.

The CFTC's Market Participants Division announced on Tuesday that it would not recommend enforcement action against Phantom for operating without introducing broker registration, provided the company meets certain conditions. Chief among them: Phantom must function strictly as a non-custodial software interface, connecting users directly with CFTC-registered entities such as futures commission merchants and designated contract markets. The wallet provider cannot hold customer funds or intermediate trades.

The practical effect is significant. Phantom can now integrate access to regulated derivatives and event contracts — including prediction markets — directly within its app through registered partners, while users submit orders straight to exchanges. The company has previously signaled plans to bring prediction markets to its roughly 20 million users through a partnership with Kalshi, the CFTC-regulated event contracts exchange.

Phantom CEO Brandon Millman framed the relief as validation of a compliance-first strategy. "Rather than building first and seeking forgiveness later, we took a different approach," the company wrote in a blog post, noting that early engagement with the CFTC helped clarify how non-custodial interfaces fit within existing regulatory frameworks. Millman called the letter "proof" that proactive regulatory dialogue produces better outcomes for users, industry participants, and regulators alike.

The broader implications extend well beyond one company. Phantom described the no-action letter as "first-of-its-kind" for this operating model, potentially establishing a regulatory template that other crypto wallet providers could follow to offer similar services. At a time when the boundaries between decentralized finance tools and traditional regulated markets are increasingly blurred, the CFTC's willingness to carve out space for non-custodial interfaces suggests a more pragmatic posture toward crypto infrastructure. Whether other wallet developers pursue similar relief — and whether the CFTC grants it — could shape how millions of crypto users eventually access derivatives and prediction markets in the United States.