Phantom and Hyperliquid Are Asking the CFTC to Rewrite the Rules for Onchain Derivatives — Here's What That Means
(85 days ago) · 1 source · Summarized by CryptoBipto
Crypto wallet provider Phantom and decentralized exchange Hyperliquid have formally requested that the U.S. Commodity Futures Trading Commission (CFTC) update its regulatory framework to accommodate onchain derivatives. The companies are pushing for modernized rules that reflect how decentralized trading platforms actually work, rather than forcing them into legacy financial frameworks.
WHY IT MATTERS
Think of derivatives as financial bets on the future price of something — like agreeing today to buy Bitcoin at a set price next month. In traditional finance, these are heavily regulated by the CFTC, a U.S. government agency. Now, crypto companies are building these same products on blockchains, where trades happen automatically through code instead of through banks or brokers. The problem is that the CFTC's current rules were written for the old system. Phantom and Hyperliquid are essentially asking the government to update its rulebook so that blockchain-based derivatives can operate legally without pretending to be something they're not. For everyday crypto users, clearer rules could mean safer, more accessible trading platforms and less risk of sudden regulatory crackdowns.
Read the full analysis with a CryptoBipto membership
Members can read the full analysis of every story, not just the headline.
Get startedSOURCES
- Source
RELATED
Learn the concepts behind this
Clear explanations of the subjects this article touches, with every term defined.