Hyperliquid and Phantom Push Back Against CFTC Broker Rules

The Hyperliquid Policy Center and wallet provider Phantom have officially asked the Commodity Futures Trading Commission to rethink its approach to decentralized finance. In a joint filing submitted this Thursday, the two groups argued that federal registration requirements for brokers should not extend to those building onchain software or non custodial wallets.

The core of their argument is that these tools are fundamentally different from traditional financial intermediaries. Since developers and wallet creators do not hold customer funds or execute trades in the same way as a bank or a centralized exchange, the companies believe it is a mistake to force them into the same regulatory boxes.

If the CFTC moves forward without these changes, it could place a heavy compliance burden on the infrastructure layer of the crypto industry. This situation is worth watching as regulators decide how to draw the line between software developers and actual financial brokers. The outcome will likely shape how decentralized apps operate in the United States moving forward.