Phantom, Hyperliquid ask CFTC to modernize rules for onchain derivatives
Cointelegraph 2026-07-09 19:36:52
Context: Phantom and Hyperliquid, two prominent companies in the blockchain and cryptocurrency space, have jointly petitioned the Commodity Futures Trading Commission (CFTC) to update its regulations to better accommodate on-chain derivatives. The companies argue that current rules, designed for traditional financial intermediaries, are not well-suited for blockchain developers and non-custodial wallet providers. This petition reflects a broader effort to modernize regulatory frameworks and foster innovation in the rapidly evolving digital assets sector.
Key Facts
- Phantom and Hyperliquid have urged the CFTC to exempt blockchain developers and non-custodial wallet providers from rules that were originally designed for traditional financial intermediaries, in order to create a more suitable regulatory environment for on-chain derivatives.
- The petition reflects a push for regulatory modernization, acknowledging that current rules may not adequately address the unique characteristics and operational models of blockchain-based financial services and products.
- By seeking exemptions for blockchain developers and non-custodial wallet providers, Phantom and Hyperliquid aim to promote innovation and clarity in the on-chain derivatives market, potentially paving the way for more widespread adoption and development of these financial products.