Post Content
Phantom, the non-custodial wallet for the Solana (CRYPTO: $SOL) and Ethereum (CRYPTO: $ETH) blockchains, says it secured a no-action letter from the U.S. Commodity Futures Trading Commission, allowing the platform to offer regulated derivatives to its users.
According to the announcement, Phantom said it can now integrate direct access to regulated event contracts and commodity derivatives within its interface without being required to register as a broker.
In a statement released Tuesday, the CFTC said that “subject to certain specified conditions, MPD will not recommend the Commission take an enforcement action against Phantom or its relevant personnel for failure to register as an introducing broker or associated person of an introducing broker solely in relation to these activities.”
More From Cryptoprowl:
-
MoonPay Launches New Cross Chain Funding Options For Pump.Fun Traders
-
Eightco Secures $125 Million Investment From Bitmine And ARK Invest, Shares Surge
-
Stanley Druckenmiller Says Stablecoins Could Reshape Global Finance
“We’re grateful to the CFTC for working through a genuinely novel question with us, and we look forward to bringing more innovative products to consumers in a way that gives them confidence and sets the right precedent,” said Brandon Millman, Chief Executive Officer of Phantom.
The timing works in favour of Phantom as platforms have seen a recent surge in demand for event contracts – derivatives that pay out based on the outcome of real-world events, such as economic indicators or political results.
The CFTC also recently issued similar no-action letters to Bitnomial and QC Clearing.
To maintain compliance, Phantom says it will need to guarantee all contracts are fully collateralized and disclose to users the risks associated with derivatives trading.