The US Commodity Futures Buying and selling Fee (CFTC) has issued a letter stating that it’ll not course of transactions for the Phantom cryptocurrency pockets.
The CFTC has said that it’ll not pursue authorized motion in opposition to Phantom as a result of its cryptocurrency pockets software program permits customers to immediately handle their very own non-public keys and property.
“CFTC workers determined in opposition to taking any motion in opposition to the supplier of cryptocurrency pockets software program with self-custody capabilities…”
On the different hand, the CFTC won’t require the Phantom cryptocurrency pockets to have registration for private custody.
This choice exhibits that the CFTC doesn’t take into account self-custodial pockets providers, the place customers immediately handle their non-public keys and property, as conventional monetary intermediaries or brokers.
This is as a result of platforms that facilitate transactions in derivatives markets are usually required to register with the CFTC as brokers or intermediaries.
Consequently, Phantom can possible proceed providing its providers with out going via complicated dealer registration procedures or fulfilling related regulatory compliance obligations.
*This shouldn’t be funding recommendation.
