CFTC No-Action Letter For Self-Custodial Crypto Wallet Reflects Shift In Regulatory Approach

On March 17, 2026, the Division of Enforcement of the Commodity Futures Trading Commission (CFTC) issued a no-action letter (Letter) to Phantom Technologies Inc., a developer of self-custodial crypto asset wallet software, confirming that if Phantom adhered to certain conditions the Division would not recommend enforcement action for failure to register as an introducing broker.¹ The Letter represents a trend at the CFTC to shift toward a more lenient regulatory approach to certain service providers, especially in the crypto space.

The Letter concerns registration requirements for non-custodial crypto wallet software that facilitates access to new derivative products, such as event contracts and perpetual futures. Importantly, Phantom’s software would connect users to registered designated contract markets (DCMs), futures commissions merchants, (FCMs) or introducing brokers (IBs) (“collaborators,” collectively) that offer these products. The Letter addresses the question of whether