Hyperliquid and Phantom jointly recommend that CFTC update DeFi regulatory rules

On July 10, Hyperliquid and the unmanaged wallet Phantom jointly submitted a submission to the U.S. Commodity Futures Trading Commission (CFTC), calling for updates to regulatory rules for on-chain trading infrastructure. Both parties believe that the current CFTC rules are formulated for traditional financial systems that rely on centralized intermediaries and do not apply to DeFi. It is recommended that it be clear that the development of on-chain transaction protocol software does not need to be registered as an exchange or clearing institution, and the non-escrow wallet front end does not need to be registered as an introduction broker. At the same time, regulated institutions are allowed to use blockchain to conduct trading and clearing businesses. Previously, the CFTC and the US SEC jointly issued a draft for comments in June to solicit opinions from the industry on regulatory rules that affect financial innovation.