Phantom Technologies and the Hyperliquid Policy Center filed a joint comment with the Commodity Futures Trading Commission asking the agency to update its rules for onchain market infrastructure.
The comment responds to the CFTC’s request for information on regulations that may limit fintech firms from partnering with financial infrastructure and intermediaries regulated by the Commission.
Phantom and HPC said current rules generally assume a custodial market structure where intermediaries handle customer orders and funds, while onchain markets can allow users to trade directly and retain control of their assets.
The groups asked the CFTC to confirm that developing or contributing to onchain protocol software does not, by itself, trigger registration with the Commission. They said registration should apply to firms that actually handle customer orders or funds, or enter into transactions with customers, rather than to software protocols or developers standing alone.
Phantom and HPC also asked the CFTC to give registered exchanges, clearing organizations and intermediaries a path to use onchain infrastructure for regulated functions.
