Hyperliquid and Phantom have teamed up to ask the Commodity Futures Trading Commission to formalise a regulatory exemption that would cover all non‑custodial wallet providers. The move follows Phantom’s March no‑action relief, which allowed the company to operate without the usual broker‑style oversight. By turning that relief into a formal rule, the two firms hope to give the entire DeFi wallet ecosystem a similar shield from traditional brokerage regulations.
For everyday crypto users, this could mean more flexibility in how they interact with on‑chain assets. On the flip side, the reduced regulatory oversight might also leave users with fewer protections against fraud or mismanagement. The request comes at a time when the market is in a state of extreme fear, yet Bitcoin and Ethereum have posted modest gains of 1.5 % and 0.46 % respectively. Clearer rules could help restore confidence, but the outcome will depend on how the CFTC interprets the filing.
What to watch next is whether the CFTC approves the exemption and how it will be applied across the DeFi landscape. The filing also dovetails with other regulatory developments, such as the White House’s lack of Democratic nominees for SEC and CFTC vacancies and ongoing discussions about modernising on‑chain derivatives rules. These factors together paint a picture of a regulatory environment in flux, with DeFi players seeking clarity while the broader market remains cautious.