Hyperliquid Policy Center (HPC), together with Phantom, submitted a joint opinion to the U.S. Commodity Futures Trading Commission (CFTC), arguing that regulatory principles are needed to clearly distinguish between infrastructure developers and financial service providers even in on-chain markets. The two entities emphasized, "U.S. financial regulations have long treated infrastructure provision and financial service provision as separate domains. Just as an internet service provider is not subject to financial regulation even if it provides the communication infrastructure for a financial company, regulation should apply to financial companies that actually operate services, not to developers. The regulatory framework must be re-examined in line with the development of financial technology, and regulations should be designed to allow developers to develop technology and registered businesses to innovate services. Furthermore, a software engineer developing an order matching engine for a futures exchange is unrelated to the operation of the exchange. Infrastructure development and financial service operation must be clearly distinguished."
