Phantom has received an unusual green light in the US. The source says the Commodity Futures Trading Commission issued a no-action letter in March 2026, allowing the Solana-focused software wallet to present interfaces for regulated derivatives products to US users. Under that arrangement, Phantom may show market data, offer trading interfaces, and generate revenue from certain services without registering as a brokerage.
The limits are strict. Phantom cannot access customer assets, provide investment advice, or enter into legal client relationships. Those functions remain with registered brokers, exchanges, or derivatives markets. The CFTC describes the setup as a separation between software provision and direct client engagement, while custody, settlement, and clearing stay with regulated institutions.
A software layer, not a broker or custodian
Under the model outlined in the source, Phantom is restricted to the role of a passive software intermediary. Users can reach regulated markets through approved partners while retaining control of their assets. The wallet may earn shared revenue and transaction-based fees, but it must also meet compliance conditions, including detailed risk disclosures, conflict-of-interest notices, recordkeeping, and shared responsibility with partner institutions.
Phantom said the exemption applies only to custody-based structures working with registered exchanges. DeFi applications and tokenized prediction market derivatives are outside the permitted scope. The source also notes that the CFTC may revise or narrow the terms of the relief as rules evolve.
Prediction markets are drawing capital and regulatory attention
The article frames prediction markets as a key testing ground for this wallet model. Global transaction volume topped $64 billion in 2025, including $27 billion in January 2026 alone. FalconX projects that activity in the sector could exceed $325 billion in the coming year. Large market operators and trading firms are already paying attention: executives from Nasdaq and CME have pointed to the need for clearer rules, ICE Group is reportedly considering an investment of up to $2 billion in Polymarket, Robinhood’s annual revenue from active contracts has passed $200 million, and Kalshi has raised $1 billion at an $11 billion valuation.
Regulation is moving in parallel with that growth. In March 2026, the CFTC and SEC signed an agreement to coordinate supervision of US-based prediction markets. Around the same period, Democratic lawmakers introduced the “BETS OFF” bill to limit contracts tied to military and sensitive government operations. The source also says Arizona has brought charges against Kalshi over its market activity.
A narrow opening for crypto wallets in regulated markets
The no-action relief offers a concrete template for how a crypto wallet might sit closer to regulated financial infrastructure without becoming a broker. The wallet keeps the user-facing interface and parts of the service layer, while licensed institutions handle the regulated market functions underneath. In the source’s framing, that could push wallets toward a broader role that combines self-custody, payments, and access to regulated markets.
Still, the opening is limited. Federal and state rules continue to clash, and prediction markets remain under heavy scrutiny. For Phantom, this is less a broad license than a tightly bounded permission with terms that can still change.