CFTC Issues No-Action Relief for Self-Custodial Crypto Wallet Software Provider, March 2026

On March 17, 2026, the Commodity Futures Trading Commission's Market Participants Division (MPD) issued a no-action position in response to a request from Phantom Technologies Inc., a developer of self-custodial crypto asset wallet software. The MPD stated it will not recommend enforcement action against Phantom or its personnel for failure to register as an introducing broker (IB) or associated person of an IB solely in relation to Phantom's proposed facilitation of trading by its users with registered futures commission merchants, introducing brokers, and designated contract markets. The no-action position is subject to specified conditions and remains in the supervisory staff-level posture typical of MPD letters.

The controlling authority is Section 4d of the Commodity Exchange Act (CEA), 7 U.S.C. § 6d, which requires persons soliciting or accepting orders for futures contracts and exercising discretionary authority over customer accounts to register as introducing brokers. MPD's no-action position operates under CFTC Regulation 1.71, 17 C.F.R. § 1.71, which governs the process by which CFTC staff may grant relief from registration requirements on a conditional basis. The no-action letter (CFTC Press Release No. 9197-26) does not constitute a formal Commission rulemaking and does not bind the full Commission.

Self-custodial crypto wallet providers that integrate order-routing functionality connecting users to registered CFTC intermediaries now have a clearer compliance path. Phantom Technologies may market its wallet software and route user orders to registered futures commission merchants and designated contract markets without registering as an IB, provided it complies with each condition stated in the no-action letter. Other non-custodial wallet developers seeking similar relief must file separate requests with MPD. Decentralized finance protocol operators and exchange aggregators that route orders to regulated derivatives venues should evaluate whether their activities create registration exposure under Section 4d(a) of the CEA.

The conditions attached to the no-action position are binding on Phantom's conduct; failure to satisfy any stated condition could expose Phantom and its personnel to registration enforcement. The letter is revocable at MPD's discretion and does not prevent the full Commission from reaching a different conclusion in a formal rulemaking or enforcement proceeding. Wallet developers with custody or discretionary authority over customer assets retain full IB and futures commission merchant registration obligations under the CEA irrespective of this letter.

Source: CFTC Press Release No. 9197-26, "CFTC Staff Issues No-Action Position to Self-Custodial Crypto Asset Wallet Software Provider," March 17, 2026. Official URL: https://www.cftc.gov/PressRoom/PressReleases/9197-26. Confirmed March 20, 2026.

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