CFTC Grants Exemptive Relief for Introducing Broker Registration to Self-Custody Crypto Wallet Phantom

On March 17, the U.S. Commodity Futures Trading Commission (CFTC) Division of Market Participants issued a "no-action" letter to Phantom Technologies Inc., a developer of self-custodial crypto asset wallet software. The position targets software features that Phantom intends to offer and promote, allowing its users to trade through registered Futures Commission Merchants (FCMs), Introducing Brokers (IBs), and Designated Contract Markets (DCMs). The CFTC stated that, provided certain conditions are met, the Division of Market Participants will not recommend enforcement action against Phantom or its associated persons solely for the aforementioned activities, provided they are not registered as Introducing Brokers or their associated persons.