CFTC Charts New Regulatory Course for On-Chain Perpetual Platforms

The U.S. Commodity Futures Trading Commission (CFTC) is exploring a regulatory framework tailored for on-chain perpetual derivatives platforms, including protocols like Hyperliquid.

CFTC Chairman Mike Selig emphasized that regulators should focus on the future of financial markets rather than rigidly applying exchange rules written in 1934.

The agency is developing rules specifically designed for on-chain products, with a focus on investor protection, market integrity, and systemic risk management.

Selig noted that applying 1930s-era exchange definitions to modern blockchain-based trading systems would be counterproductive and could stifle innovation.