Phantom, Hyperliquid ask CFTC to modernize rules for onchain derivatives
Phantom and Hyperliquid urged the CFTC to exempt blockchain developers and non-custodial wallet providers from traditional financial regulations. The companies argue existing rules, designed for custodial intermediaries, stifle onchain derivatives innovation in America while markets thrive offshore. They seek clarity allowing regulated exchanges to use blockchain infrastructure while protecting direct user transactions from unnecessary compliance burdens.
Key takeaways
- 1Phantom and Hyperliquid asked CFTC to exempt blockchain developers and non-custodial wallet providers from traditional financial intermediary regulations.
- 2Companies argue existing CFTC rules designed for custodial intermediaries are stifling onchain derivatives innovation in America while markets thrive offshore.
- 3ICE CEO called for level playing field allowing regulated exchanges to offer 24/7 onchain perpetual futures under existing regulations.
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Why it matters
Regulatory clarity on onchain derivatives could determine whether India's crypto investors access regulated, compliant blockchain-based trading platforms or continue relying on offshore alternatives. The CFTC's decision will shape global crypto derivatives innovation and whether traditional exchanges can compete with decentralized platforms.
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