Phantom receives CFTC nod to offer derivatives in no-action relief
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CFTC issued no-action relief to Phantom, allowing the crypto wallet to offer users access to regulated derivatives and event contracts via a registered exchange partner so long as Phantom does not custody funds and orders are submitted directly to the exchange. Relief applies to a custodial model (not DeFi or tokenized derivatives/prediction markets) and clarifies that entities soliciting derivative orders face CFTC registration obligations, setting a regulatory precedent for wallets and DeFi interfaces. Milestones: Phantom’s Kalshi partnership (Dec 2025) and prior industry engagement (a16z comments in Aug 2025) illustrate growing adoption and coordination between wallets, exchanges, and regulators in crypto derivatives access.
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The U.S. Commodity Futures Trading Commission (CFTC) has issued a no-action position to Phantom, a “first-of-its-kind” relief that the crypto wallet provider says will allow it to offer users regulated derivatives directly.
In a letter on Tuesday, the CFTC said it will not pursue enforcement action against Phantom or its relevant personnel for failing to register as an introducing broker or associated person of an introducing broker, with respect to its plans to facilitate derivatives trading.
Phantom now cleared to offer regulated derivative markets
Phantom is planning to offer user access to regulated derivatives and event contracts directly on the wallet app, but through a registered partner.
The letter confirms Phantom is allowed to act as a wallet interface connecting users to derivatives markets, without taking on the regulatory obligations of an introducing broker, as long as the orders are submitted directly to a registered exchange, and it doesn’t custody customers’ funds.
“Rather than building first and seeking forgiveness later, we took a different approach to give our users safe and reliable ways to access traditional financial markets,” Phantom wrote in a blog post. “This letter is the result of that process.”
Why this matters?
CFTC’s position on Phantom sets the regulatory tone on how wallet providers and DeFi protocols alike can interact with regulated derivatives.
Any entity that solicits or accepts orders to trade derivatives, whether futures, options, or predictions, to earn commissions, is obligated to register with the CFTC. This definition has led to calls for clarity, especially from the DeFi sector, on whether interfaces and certain trading features cross into the licensing territory.
In August 2025, Andreessen Horowitz (a16z) submitted comments to CFTC, urging the commission to issue no-action relief or interpretative guidance for decentralized finance (DeFi) protocols and applications on certain areas, including tokenized and onchain derivative.
The greenlight today, meanwhile, applies specifically to a custodial model with a registered exchange partner. “It does not cover DeFi derivatives or tokenized prediction markets,” according to Phantom.
“The CFTC letter acknowledges their focus on developing rulemaking or guidance that may supersede the letter in the future, and we hope that our engagement can help shape a long-lasting framework that benefits the industry as a whole,” Phantom added.
In other news, the wallet provider already lets users trade predictions directly on the app. It partnered with Kalshi in December 2025, after Metamask added Polymarket for onchain prediction.
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