According to The Block, CFTC Chair Michael Selig stated that the CFTC is seeking to establish rules to protect non-custodial software developers. In March, the CFTC issued a no-action letter to the crypto wallet Phantom, clarifying that qualifying self-custodial wallet software developers are not required to register as brokers. Selig reaffirmed that prediction markets fall exclusively under the CFTC’s jurisdiction and stated that the agency will continue to pursue legal action against states that violate federal jurisdiction.
CFTC Chair Announces Plans to Protect Non-Custodial Wallet Developers
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Summary
CFTC Chair Michael Selig announced efforts to protect non-custodial wallet developers, emphasizing the need to align with CFT (Countering the Financing of Terrorism) protocols. In March 2026, the agency issued a no-action letter to Phantom, confirming that self-custody wallet developers do not require broker licenses. Selig highlighted that prediction markets remain under CFTC jurisdiction and noted the agency’s focus on ensuring liquidity and crypto markets operate under federal oversight.
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