Phantom asks CFTC to allow on-chain perps in non-custodial wallets before July 9
Phantom filed with the US CFTC ahead of a July 9 deadline, arguing that non-custodial wallet software can give users access to regulated on-chain perps without automatically triggering introducing broker registration.
In the joint submission with the Hyperliquid Policy Center, Phantom warns that current rules “unduly impede” fintech firms from integrating with compliant derivatives venues. Phantom describes its model as “software in the middle”: users retain custody and private keys, while orders are routed directly between traders and registered exchanges/clearinghouses.
The filing asks the CFTC for three clarifications: (1) protocol developers should not face broker registration just for building on-chain software; (2) registered exchanges and derivatives clearing organizations should have a clearer path to run execution, margining, and recordkeeping on public blockchains; and (3) non-custodial wallets should not be treated as introducing brokers when they only provide technical access.
Traders should note this goes beyond March staff-level no-action relief, and the outcome will depend on what the CFTC codifies next. Still, if regulators formalize the approach, on-chain perps could become easier to access directly inside wallet interfaces—while custody, execution, and margining remain with regulated venues.
The CFTC has also previously warned (May 29) that 24/7 always-on access can increase risks tied to liquidity, volatility, spreads, manipulation, and cybersecurity, so compliance expectations may also tighten.
Overall: clearer on-chain perps rules could reduce integration friction for regulated venues and wallet apps, but near-term price impact is likely limited given the regulatory timeline and uncertainty.
Neutral
This is a compliance and market-structure clarification rather than a direct protocol change or new product launch. If the CFTC codifies Phantom’s approach, it could expand distribution of regulated on-chain perps via wallet apps and reduce friction for exchanges/clearinghouses. However, the March no-action relief was staff-level and fact-specific, and the CFTC’s subsequent rulemaking could still narrow, delay, or add conditions. Meanwhile, the regulator has highlighted risks from 24/7 always-on access, implying that additional safeguards may be required. Net effect on the specific traded token is therefore uncertain and more likely incremental than immediately market-moving.