Hyperliquid and Phantom Ask CFTC to Clarify Rules for Publishing On-Chain Protocol Software

Phantom and Hyperliquid Policy Center (HPC) have submitted a joint comment letter to the U.S. Commodity Futures Trading Commission (CFTC), calling for regulatory changes to better accommodate on-chain market infrastructure.

Specifically, the letter outlines several policy recommendations, including clarifying that the publication of on-chain protocol software alone should not require registration. It also calls for a defined framework that would enable regulated exchanges and clearinghouses to integrate on-chain technology.

The groups further requested that the CFTC formalize the Phantom non-action letter through a regulatory rule, providing clearer guidance for blockchain-based market operations.

According to the submission, existing regulatory frameworks were developed around traditional custodial intermediaries and should be updated to account for the self-custodial and transparent structure of on-chain markets.

Source: Wu Blockchain