Leading players in the cryptocurrency industry — the analytical center Hyperliquid Policy Center and the non-custodial wallet Phantom — have sent a joint appeal to the U.S. Commodity Futures Trading Commission (CFTC). Their key request: to exclude on-chain protocols and non-custodial wallets from the registration requirements imposed on exchanges and brokers.
In their analytical commentary, experts emphasize that the mere publication of software for decentralized finance (DeFi) should not automatically fall under the definition of an exchange or clearing organization. Such an interpretation, in their opinion, creates an excessive regulatory burden that could stifle innovation in the sector.
Additionally, Hyperliquid and Phantom proposed that the CFTC develop a clear mechanism for already registered companies seeking to transfer their regulated functions to on-chain infrastructure. This would allow traditional financial institutions to smoothly integrate into the DeFi world without violating existing norms.
Analyst's View
This request is a timely and strategically important step. Regulators often try to apply outdated rules to fundamentally new technologies, which hinders the development of the entire ecosystem. If the CFTC heeds these arguments, it will set a precedent for more flexible DeFi regulation in the U.S., positively impacting liquidity and the inflow of institutional capital. However, it remains unclear whether the regulator is ready for such concessions.