Phantom and Hyperliquid Push CFTC to Update Crypto Derivatives Rules
Two major crypto firms want the CFTC to stop applying old-school finance rules to blockchain devs and non-custodial wallets.
Phantom and Hyperliquid aren't waiting around. Both firms have gone straight to the CFTC with a clear message: the rulebook you're using was written for Wall Street middlemen, not decentralized protocols.
The core ask is straightforward — exempt blockchain developers and non-custodial wallet providers from regulations that were designed for traditional financial intermediaries. These are entities that don't hold your funds, don't execute trades on your behalf, and frankly don't fit the legal mold the CFTC has been trying to squeeze them into.
Read more AI Giants Are Buying Election Influence — Here's What They Want →
This matters for you as a trader. If regulators treat every wallet provider like a broker-dealer, innovation gets choked. Onchain derivatives — one of the fastest-growing corners of crypto — could get kneecapped before it ever reaches mainstream adoption. Hyperliquid alone has emerged as a dominant force in decentralized perpetuals trading, so its voice here carries serious weight.
The broader push reflects a growing industry-wide effort to get regulators to acknowledge that decentralized infrastructure operates fundamentally differently than a clearinghouse or a futures exchange. You can't send a subpoena to a smart contract. The sooner the CFTC internalizes that, the better the regulatory framework gets for everyone building and trading onchain.
Watch this space closely. CFTC modernization of crypto derivatives rules could set the tone for how the entire DeFi derivatives market gets treated going forward. Continue reading at Cointelegraph.
