Phantom and Hyperliquid asked the CFTC to modernize its approach to onchain derivatives regulation. The companies argued that blockchain developers and non-custodial wallet providers should not be treated like traditional financial intermediaries.
Phantom and Hyperliquid asked the CFTC to modernize its approach to onchain derivatives regulation. The companies argued that blockchain developers and non-custodial wallet providers should not be treated like traditional financial intermediaries.
The request matters because it highlights a recurring tension in crypto regulation: decentralized software and user-controlled wallets do not always fit neatly into rulebooks built around brokers, exchanges and other centralized financial firms. For companies building onchain markets, the way regulators define responsibility could shape which services can operate in the United States and how developers design them.
Phantom and Hyperliquid have urged the US Commodity Futures Trading Commission to modernize rules for onchain derivatives, according to Cointelegraph. The companies asked the regulator to exempt blockchain developers and non-custodial wallet providers from requirements designed for traditional financial intermediaries.
The request matters because it highlights a recurring tension in crypto regulation: decentralized software and user-controlled wallets do not always fit neatly into rulebooks built around brokers, exchanges and other centralized financial firms. For companies building onchain markets, the way regulators define responsibility could shape which services can operate in the United States and how developers design them.
Phantom is known as a non-custodial crypto wallet, while Hyperliquid is associated with onchain trading infrastructure. Their position centers on the idea that software providers and wallet developers should not automatically be regulated as intermediaries when they do not custody user assets or perform the same functions as legacy financial firms.
The appeal comes as US regulators continue to examine how existing market rules apply to digital assets and blockchain-based trading. Onchain derivatives are a particularly sensitive area because derivatives markets are already heavily regulated in traditional finance, while decentralized systems can distribute functions across protocols, interfaces and users.
The CFTC has not been reported in the source material as adopting the companies’ proposal. For now, the filing adds to the broader debate over whether crypto-specific market structure rules are needed, and how regulators should distinguish between financial intermediaries and the developers of open blockchain tools.
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