Hyperliquid and Phantom Jointly Recommend CFTC to Update DeFi Regulatory Rules

Odaily Odaily reports that Hyperliquid and non-custodial wallet Phantom have jointly submitted a comment letter to the U.S. Commodity Futures Trading Commission (CFTC), calling for updated regulatory rules for on-chain trading infrastructure. Both parties believe that current CFTC rules are designed for the traditional financial system, which relies on centralized intermediaries, and are not applicable to DeFi. They recommend clarifying that developing on-chain trading protocol software does not require registration as an exchange or clearing agency, nor do non-custodial wallet frontends need to register as introducing brokers. They also suggest allowing regulated institutions to use blockchain for trading and clearing operations. Previously, the CFTC and the U.S. SEC jointly issued a request for comment in June, seeking industry feedback on regulatory rules impacting financial innovation. (The Block)