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U.S. regulator permits Phantom cryptocurrency wallet to operate without broker license., 2026/03/18 10:25:19
The U.S. Commodity Futures Trading Commission (CFTC) has opted not to impose penalties on Phantom Technologies, the operator of the Phantom cryptocurrency wallet, despite its lack of registration as a broker.
This pertains to a non-custodial wallet that enables users to independently store and manage their digital assets. According to the company, Phantom intends to enhance its functionality in the future by incorporating an interface for viewing derivatives data, tracking positions, and sending orders to registered exchanges and brokerage platforms.
The CFTC clarified that the absence of claims is contingent upon meeting several conditions. Specifically, Phantom must continue to act as a software provider and refrain from executing trades. Users are required to submit orders directly to registered platforms, without the wallet acting as an intermediary. Additionally, the company must inform clients about the risks associated with trading derivatives.
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Consequently, the regulator has effectively acknowledged that providing an interface for accessing trading infrastructure does not, in itself, necessitate a broker’s license, provided the service does not hold user funds or conduct transactions on their behalf. The CFTC emphasized that this decision could be reevaluated if the service’s operational model changes.
The ruling regarding Phantom may set a significant precedent for non-custodial wallets and cryptocurrency service developers. Ongoing debates in the U.S. focus on whether software creators can be held liable if their products are utilized in illegal activities.
This issue has already been raised in cases against the developers of the cryptocurrency mixer Tornado Cash and the wallet Samourai Wallet, who were accused of money laundering and operating without a license. The developers maintain that they merely create code and do not control user funds.
Previously, the advocacy group Coin Center urged the U.S. Congress to enact legislation that would protect cryptocurrency service developers from criminal prosecution and exempt them from the requirement to obtain money transmission licenses.
