The Hyperliquid Policy Center and Phantom on Thursday asked the Commodity Futures Trading Commission to update its rules regarding onchain trading infrastructure.
In a co-written comment letter, the organizations argued that current CFTC rules were written for the traditional financial system, which is reliant on centralized intermediaries, and not for decentralized finance.
"The Commission's preexisting rules were built for legacy markets," HPC and Phantom wrote. "There, customers hand their orders and money to a chain of intermediaries: a broker takes the order, an exchange matches it, and a clearinghouse guarantees and settles it, collecting margin and standing behind the trade. At every step, someone other than the customer controls the funds."
"Onchain markets work differently, and they need rules of their own," they added.
The CFTC and the Securities and Exchange Commission issued a Request for Information (RFI) in mid-June, asking for input on regulations that are impacting financial innovation and making it harder for novel tech providers to partner with CFTC-regulated firms.
