Phantom, Hyperliquid ask CFTC to modernize rules for onchain derivatives
Phantom and the Hyperliquid Policy Center urged the CFTC to exempt blockchain protocol developers and non-custodial wallet providers from rules meant for traditional financial intermediaries. They asked the agency to confirm that developers do not need to register just for building onchain software, to let regulated derivatives firms use blockchain infrastructure, and to exempt non-custodial wallets from being treated as introducing brokers. Their core argument is that CFTC rules were built for custodians that hold funds and execute trades, while onchain protocols let users transact directly without intermediaries controlling assets. They also want regulators to clarify that registered exchanges, clearinghouses, and intermediaries can use blockchain for execution, clearing, settlement, margining, and recordkeeping while staying compliant. The push comes amid broader debate over how US regulators should treat onchain derivatives.
