WASHINGTON, March 17, 2026 — Staff at the U.S. Commodity Futures Trading Commission (CFTC) said Tuesday they would not recommend enforcement action against Phantom Technologies Inc., a developer of self-custodial crypto asset wallet software, in connection with the company’s proposed provision and marketing of software designed to facilitate derivatives trading through registered intermediaries and trading venues, according to a CFTC press release.
The CFTC’s Market Participants Division (MPD) published CFTC Staff Letter No. 26-09, dated March 17, 2026, a no-action letter responding to a request from the company regarding registration requirements applicable to introducing brokers and associated persons of introducing brokers under the Commodity Exchange Act.
According to the letter, subject to specified conditions, MPD staff will not recommend that the Commission bring an enforcement action against Phantom for failure to register as an introducing broker under Section 4d(g) of the Commodity Exchange Act, or against relevant personnel for failure to register as associated persons of an introducing broker under Section 4k, solely in connection with the proposed activities described in the request.
Software designed to facilitate access to derivatives markets
The request relates to Phantom’s proposal to expand its existing self-custodial wallet software to enable users to access trading in Commission-regulated derivatives products through registered futures commission merchants (FCMs), introducing brokers, and designated contract markets (DCMs).
Under the proposal described in the letter, Phantom would develop and distribute front-end interface software allowing users to review market data, aggregate position information, view information about product offerings, and submit orders for derivatives products directly to those intermediaries and venues.
The software would operate on a user’s mobile device or through a browser extension and would enable users to transmit orders directly to collaborating intermediaries or trading venues.
CFTC staff said Phantom’s role would be limited to providing the software interface and would not involve affirmative participation in specific orders submitted by users.
The company also represented that its software would not generate explicit “buy” or “sell” signals and would not exercise discretion over the routing or execution of orders.
Self-custodial wallet model
Phantom’s existing business involves developing and distributing self-custodial wallet software used to generate and manage cryptographic credentials for viewing, storing, and conducting self-directed crypto asset transactions.
The software enables users to manage digital assets across multiple blockchain networks including Bitcoin, Ethereum, and Solana, while maintaining control of their private keys.
Under the proposed derivatives-trading functionality described in the letter, users would maintain collateral and other assets associated with derivatives positions with regulated market infrastructure, such as FCMs or derivatives clearing organizations, rather than with Phantom.
Conditions attached to the no-action position
The no-action position applies only under specified conditions outlined by CFTC staff.
Among other requirements, Phantom must provide users with disclosures regarding its relationships with collaborating intermediaries and potential conflicts of interest, ensure users receive risk disclosures related to derivatives trading, maintain policies and procedures addressing communications and marketing, and preserve records related to the activities.
The letter also requires Phantom and each collaborating intermediary to execute written undertakings agreeing to joint and several liability for violations of the Commodity Exchange Act or CFTC regulations arising from the activities conducted in connection with the software.
Staff position limited to MPD
The letter states that the no-action position reflects the views of the Market Participants Division and does not necessarily represent the position of the Commission or other CFTC offices or divisions.
As with other staff no-action letters, the position is based on the specific facts and circumstances presented in the request and may be modified, suspended, or withdrawn if those facts change or if the Commission later issues rulemaking or guidance addressing the application of introducing-broker registration requirements to software providers.
