The Commodity Futures Buying and selling Fee (CFTC) has issued a no-action letter in response to Phantom, clearing the self-custodial crypto pockets supplier to facilitate regulated derivatives trades without having to register with the federal derivatives supervisor.
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Regulator Exemption: Printed this morning, CFTC Letter No. 26-09 points a no-action place to Phantom, clearing the crypto pockets software program supplier to supply regulated derivatives buying and selling performance by means of its self-custodial pockets without having to register as an introducing dealer or related particular person of an introducing dealer. You will need to be aware that this no-action letter solely covers regulated futures buying and selling.
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Conditional Reduction: To obtain regulatory aid, Phantom customers should transact by means of CFTC-regulated Designated Contract Markets (DCMs), and at no level can Phantom take management of consumer funds. Moreover, Phantom should present customers with correct danger disclosures, keep compliance insurance policies governing advertising and marketing and communications, and maintain data associated to its derivatives-related actions.
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Derivatives Ambitions: In accordance with the CFTC’s letter, Phantom plans to increase its self-custodial pockets’s capabilities, enabling customers to commerce CFTC-regulated derivatives with their crypto belongings by means of a front-end interface developed, supplied, and maintained by Phantom.
Whereas CFTC Letter No. 26-09 clears Phantom to combine regulated futures choices, it gives no steerage on unregulated integrations.