Under FAA regulations in 2026, a Mode C transponder (which broadcasts the aircraft’s altitude to Air Traffic Control) is generally required in all controlled airspace, but there are specific "pockets" where it is not mandatory. You do not need Mode C when flying outside and below the "Mode C Veil" (a 30-nautical-mile radius around Class B airports) and outside of Class C airspace, provided you stay below 10,000 feet MSL. Furthermore, aircraft that were originally certified without an engine-driven electrical system (such as many vintage Piper Cubs or gliders) are exempt from the Mode C requirement while flying outside of Class B and C airspace and below 10,000 feet. There are also exceptions for flying in "Class G" (uncontrolled) airspace, which is typically found in rural or remote areas at very low altitudes. However, in 2026, even if Mode C isn't strictly required, the ADS-B Out requirement has superseded it in most busy areas, effectively making a modern transponder system a necessity for any pilot who wants to fly near major cities or above 10,000 feet.