Phantom and Hyperliquid have formally requested the Commodity Futures Trading Commission (CFTC) to modernize its regulatory framework concerning onchain derivatives. Specifically, they seek exemptions for blockchain developers and non-custodial wallet providers from regulations originally designed for traditional financial intermediaries, according to CoinTelegraph.
The companies argue that existing rules do not fit the decentralized nature of blockchain technology and could stifle innovation if applied without adjustment. Their proposal aims to create a clearer, more appropriate regulatory environment for emerging decentralized finance (DeFi) services.
This development is particularly relevant for Japanese investors and firms engaged in crypto and FX markets, as Japan continues to refine its own stance on digital asset regulation, balancing innovation and investor protection.