Phantom and Hyperliquid Push CFTC for Onchain Derivatives Rules

Phantom and Hyperliquid have formally requested that the Commodity Futures Trading Commission modernize its approach to digital derivatives. The firms want the regulator to clarify how existing laws apply to the decentralized ecosystem. Specifically, they are pushing for exemptions that would protect blockchain developers and providers of non custodial wallets from being treated like traditional financial middlemen.

This move comes as the commission looks at how to oversee decentralized finance platforms. The companies argue that current regulations were written for centralized banks and brokers. They believe these old standards do not work for software that functions without a central operator or gatekeeper.

If the regulator agrees, it could create a clear path for onchain derivatives to operate without the burden of legacy requirements. Traders should watch for the commission's response, as it will signal how much room the government is willing to give decentralized protocols in the coming months.