CFTC Opens Doors for Phantom to Serve Americans Without Broker Registration

Phantom, a non-custodial wallet provider, has received the first-ever no-action relief from the U.S. Commodity Futures Trading Commission (CFTC). This means that Phantom does not need to register as an introducing broker before offering derivatives products to American investors.

Today @phantom received first-of-its-kind no-action relief from the @CFTC. We can now connect users to regulated derivatives markets and event contracts without registering as an introducing broker.https://t.co/alP2RDL0Xp

— Brandon Millman (@BChillman) March 17, 2026

For context, an introducing broker is an entity that serves as a middleman between crypto users and larger crypto exchanges or brokerage firms.

Phantom Wins CFTC Approval

Shedding light on what led to the latest move from the CFTC, Phantom sought the regulatory agency’s guidance on how non-custodial wallet providers should provide access to regulated markets through a registered partner to investors.

In response, the CFTC’s Market Participants Division noted in a letter that Phantom has been granted a no-action relief. It means that the financial regulator will take no enforcement action against the wallet provider as it connects users to derivatives markets and event contracts.

Commenting on the benefit of the latest move, Phantom’s CEO, Brandon Millman, said:

“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.”

The no-action relief means that Phantom can operate only as a bridge between registered exchanges and investors. This means that it would not touch customers’ funds. Instead, it would submit users’ orders directly to the registered broker.

Phantom noted that the CFTC’s endorsement does not cover its business activities involving DeFi derivatives and tokenized prediction markets.

CFTC Becomes More Crypto-Friendly

Months before Michael Selig became CFTC chairman in December 2025, the regulatory agency had begun making crypto-friendly decisions.

Alongside the U.S. Securities and Exchange Commission (SEC), the CFTC has dispensed guidelines involving crypto adoption across the country. These rules have softened the once-stiff-necked approach the derivatives regulator had toward crypto during the last administration.

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