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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
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Sign InIn a move reflecting ongoing efforts to bridge the gap between traditional finance and decentralized technologies, Hyperliquid Policy Center and Phantom urged the U.S. CFTC to update rulebooks for onchain trading infrastructure. The companies requested exemptions for protocol developers and non-custodial wallet providers from registration rules meant for traditional intermediaries. This joint letter follows a Request for Information issued by the CFTC and SEC in mid-June regarding financial innovation.
This initiative comes as decentralized finance (DeFi) platforms face mounting regulatory pressure to define their legal status, with firms like Coinbase and Uniswap also pushing for clearer frameworks. Per market data, the lack of regulatory clarity has historically led to liquidity disparities between centralized and decentralized venues. Experts argue that applying traditional brokerage rules to open-source software could stifle technical innovation in the U.S. compared to international markets.
Traders should monitor the regulatory response, as the Commitment of Traders (CFTC) report is scheduled for release on July 6, 2026, which may reflect liquidity trends in regulated markets. With real-time price data currently unavailable for associated instruments, focus remains on any official statements from the CFTC that might signal acceptance or rejection of these proposals, directly impacting risk appetite in the DeFi sector.