Phantom and the Hyperliquid Policy Center want the CFTC to make something clear: building blockchain software isn’t the same as running a bank.
In response to a CFTC request for info on fintech regulation, the two companies asked the agency to confirm that blockchain developers don’t need to register just for writing onchain code. They also want regulated derivatives firms to get the green light to use blockchain infrastructure, and they want non-custodial wallet providers exempted from rules meant for introducing brokers.
The argument is straightforward. Current CFTC rules were designed for companies that hold customer money and process trades. Onchain protocols let people transact directly — no middleman holding funds or executing orders.
“American users continue to be walled off from onchain derivatives markets,” the companies wrote, pointing out that innovation keeps happening offshore while US rules stay stuck in the past.
This comes as tensions rise around crypto derivatives. In May, ICE and CME reportedly pushed regulators to scrutinize Hyperliquid’s commodity-linked perpetual futures. CME even sued the CFTC in June, arguing the agency overstepped its authority by approving crypto perpetual futures. Meanwhile, CME keeps expanding — launching futures on Avalanche, Sui, and Bitcoin volatility.
Everyone wants clarity. Nobody’s getting it.
