CFTC Plans Rules to Protect Non-Custodial Crypto Developers
CFTC Chair Michael Selig is moving to formally protect non-custodial software developers, building on a recent no-action letter for Phantom wallet.
Phantom No-Action Letter
In March 2026, the CFTC issued a no-action letter stating it would not enforce broker registration requirements against Phantom. The agency clarified that developers creating self-custodial wallet software do not need to register as brokers if they meet specific conditions.
Push for Formal Rulemaking
Speaking at Consensus Miami on Tuesday, Selig said the CFTC will soon codify this protection into official rules.
“As I said before, I prefer rulemaking,” Selig noted. He described the no-action letter as an initial step to provide clarity for developers building in the US.
Alignment with SEC and Prediction Markets
The SEC also released guidance last month stating that DeFi interfaces and wallets are generally not considered brokers. Separately, Selig reaffirmed the CFTC’s exclusive authority over prediction markets and confirmed the agency will continue suing states that try to ban them
