Ryan Adams

So this is, I think, something that Phantom requested.

They asked for...

a no action letter from the CFTC saying, hey, like, please don't sue us.

And the CFTC said like, yeah, we're not going to do that about plugging into perps and prediction markets.

So Phantom is now being told by the CFTC that they, the CFTC will not take any action against Phantom for allowing their users to access prediction markets and perps inside of the app.

And so what does this mean is that this means that Phantom is not being considered to be a broker, right?

It is just a wallet.

It's always been a wallet.

It's only ever going to be a wallet, but it doesn't have any broker responsibilities by integrating prediction markets or like hyperliquid, any derivative platform into the wallet.

There are some restrictions, some conditions that Fantom must meet.

They must not handle user funds, so it must remain non-custodial.

There must not be any discretionary trading or no advice given by Fantom.

I don't think Phantom wants these things anyways.

And then also the prediction markets in the derivatives platforms that Phantom points its users to must also be CFTC registered entities as well, which is kind of interesting.

But wait, there's more.

The SEC has approved the NASDAQ's plan to introduce tokenized securities trading.

So this is news that we've had in the past.

So the NASDAQ had this idea of just like, hey, maybe with our regular exchange and engine and trading venue where we typically allow security, normal securities, normal equities to be traded.

What if also in the backend, some equities that are able to be tokenized because people want them, what if we also tokenize those?

And the SEC just gave them a thumbs up.