Unless the said exemptions are codified into law, traditional players will legally challenge them.
Hyperliquid Policy Center and Phantom have urged the U.S. Commodity Futures Trading Commission to update its rulebook for onchain trading, arguing that existing regulations built for traditional financial markets do not fit decentralized infrastructure.
Exempting onchain developers from registration could accelerate blockchain innovation, reduce regulatory barriers, and attract institutional investment. Hyperliquid Policy Center and Phantom urge CFTC to exempt onchain developers from registration.
The rise of RWA trading on Hyperliquid suggests a shift towards more stable, diversified revenue streams, but regulatory scrutiny may increase. Hyperliquid sees 35% drop in quarterly trading volume as RWA perpetuals quietly take over.
Joint letter asks CFTC to exempt protocol developers from exchange registration rules.
Modernizing CFTC rules could foster US-based onchain derivatives innovation, reducing offshore reliance and enhancing market efficiency. Phantom and Hyperliquid urge CFTC to modernize onchain derivatives rules.
The companies urged the regulator to exempt blockchain developers and non-custodial wallet providers from rules designed for traditional financial intermediaries.
Phantom and Hyperliquid Policy Center urged the CFTC to clarify rules for onchain protocols, wallet providers and regulated derivatives markets. Phantom and Hyperliquid Policy Center urge CFTC to clarify onchain market rules.
Pantera Capital argues that perpetual futures have structural advantages over traditional derivatives and could dominate international finance. Hyperliquid accounts for 40% of onchain perpetual futures volume and generates $13.5 million in weekly fees, according to DefiLlama. Decentralized perps grew from less than 1% to 14% of centralized exchange volume between 2023 and 2026.
Bitwise has reshuffled the holdings of its Bitwise 10 Crypto Index ETF (BITW), removing Polkadot (DOT) and Avalanche (AVAX) while adding Stellar (XLM) and decentralized exchange token Hyperliquid (HYPE). The move highlights a growing institutional preference for crypto projects with strong revenue generation over blockchain networks focused primarily on future growth potential.
Perpetual futures and Hyperliquid's blockchain infrastructure are expanding into traditional asset classes with around-the-clock trading, according to Pantera Capital.
Bitwise adds HYPE and XLM to BITW, removing DOT and AVAX as Hyperliquid's market growth pushes it into the major crypto index ETF this week.