Hyperliquid and Phantom Jointly Recommend CFTC Update DeFi Regulatory Rules

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Golden Finance reported that on July 10, Hyperliquid and the non-custodial wallet Phantom jointly submitted a comment letter to the U.S. Commodity Futures Trading Commission (CFTC), calling for an update to regulatory rules governing on-chain trading infrastructure. The two sides believe that the current CFTC rules were designed for traditional financial systems that rely on centralized intermediaries and do not apply to DeFi. They recommend clearly defining that developers of on-chain trading protocol software do not need to register as an exchange or a clearing organization, and that the front end of a non-custodial wallet also does not need to register as an introducing broker. At the same time, they allow regulated institutions to conduct trading and clearing businesses using blockchain.
Previously, in June, the CFTC and the U.S. SEC jointly issued a notice of proposed rulemaking to solicit industry comments on regulatory rules that affect financial innovation.
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