CFTC Opens Conditional Route for Crypto Wallets to Offer Derivatives Trading
The US derivatives regulator has given crypto wallets and trading apps a conditional route to offer futures and prediction-market contracts without registering as introducing brokers.
The Commodity Futures Trading Commission's Market Participants Division issued Staff Letter 26-25 on September 17, extending relief granted to the Phantom crypto wallet in March. The agency clarified that this new position is not limited to crypto software and applies broadly.
The practical change is distribution: a wallet or app can build an interface for users to view market data and submit orders for CFTC-regulated derivatives. It can market specific contracts, introduce users to a registered venue, and receive revenue shares or charge transaction-based fees.
The letter requires that providers comply with regulations, including user conflict and risk disclosures, public-communications standards, and regulatory record-keeping. Each provider and market partner must also accept joint liability for violations connected to the covered activity.