Phantom asks CFTC for wider path to in-wallet crypto perps

US crypto investors could eventually access regulated perpetual futures from a wallet app instead of a broker account, if US regulators expand a narrow relief already granted to Phantom. On July 9, Phantom and the Hyperliquid Policy Center asked the CFTC to formalize rules for non-custodial wallet access to registered derivatives markets.

Phantom argues that wallet software should not face broker registration rules when it only provides the interface and does not hold user funds, route orders, or control execution. In its model, users keep their private keys, while registered firms handle trading, margin, settlement, and recordkeeping. The filing also asks for a clearer path for exchanges and clearinghouses to use public blockchains for market functions.

The request builds on no-action relief issued by the CFTC's Market Participants Division on March 17. That relief said staff would not recommend enforcement if Phantom avoided introducing broker registration under a specific fact pattern. It came with conditions, including risk and conflict disclosures, independent user access to registered collaborators, recordkeeping controls, marketing limits, and joint liability arrangements.

The broader question is where regulated crypto derivatives will live in the US. The CFTC noted in a May 29 advisory that 24/7 trading through blockchain networks and mobile apps also brings risks around liquidity, volatility, manipulation, and system reliability.