Phantom and Hyperliquid Are Asking the CFTC to Rewrite the Rules for Onchain Derivatives — Here's What That Means

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.