SPI Asks CFTC to Bring Blockchain-Friendly Reforms

On July 9, Solana Policy Institute submitted its response to the U.S. Commodity Futures Trading Commission (CFTC) request for public input on barriers to fintech innovation.

In the official document, the non-profit organization mentioned the need to update old regulatory frameworks to support blockchain-based markets and non-custodial interfaces like wallets.

The Solana Policy Institute mentioned in the response that “These comments focus on three areas where targeted clarification would facilitate innovation and competition without weakening market integrity, customer protection, the financial integrity of transactions, or Commission oversight. The Commission has practical tools it can use now, including guidance, no-action relief, interpretive relief, and exemptive relief under Section 4(c) of the CEA, to fulfill these objectives.”

CFTC Told: Stop Treating Non-Custodial Crypto as Banks

In its filing, Solana Policy Institute mentioned various practical clarifications needed for blockchain-based systems. The organization argues that non-custodial front-ends should not automatically be classified as financial intermediaries. These are the tools that allow users to prepare and submit their own transactions.

Solana Policy Institute has affirmed that CFTC rules must change to align with 24/7 on-chain markets, real-time risk management, and immutable on-chain records that provide transparency compared to traditional systems.

SPI has urged the agency to create frameworks that recognize the distinct operational models of decentralized protocols. “The Commission should publish guidance, or otherwise provide durable relief, clarifying that an independent software vendor, technology service vendor, wallet provider, or Front End provider is not required to register as an IB, and that its personnel are not required to register as APs, solely because the provider offers non-custodial software that helps users prepare, sign, and submit their own transactions to a registered venue or smart contract protocol,” stated in the filing.

This comment is similar to the industry-wide efforts, including joint comments from groups like the Hyperliquid Policy Center and Phantom. The blockchain industry is raising objections to imposing intermediary status on non-custodial tools and on-chain protocols.

The response also highlights the fastest blockchain, Solana, urging the CFTC to consider how on-chain data can streamline compliance, reporting, and oversight without creating any kind of burden in the financial market.

The CFTC issued its Request for Information on June 26, following Executive Order 14405. This order is directing regulators to review rules that may hinder fintech partnerships with regulated entities or create unnecessary obstacles for small and emerging companies. The agency is seeking public feedback on regulations, guidance, no-action letters, and processes that could be updated to boost innovations in derivative markets, digital asset integrations, and fintech collaborations with future commission merchants and other intermediaries. 

Solana Policy Institute Supports Regulators to Create Frameworks for Blockchain-Based Innovations

SPI is a non-partisan, non-profit organization based on educating policymakers about decentralized networks like Solana. In the past, the organization has played a role in many regulatory discussions. For example, recently, it gave a response to CFTC proposals on prediction markets in April 2026. Apart from this, it filed a legal document on staking taxation along with the Blockchain Association and others in May 2026.

In February 2026, Solana Policy Institute and its partners filed comments with the SEC regarding crypto trading platforms. Earlier, they addressed the Treasury’s GENIUS Act implementation and methods for detecting illegal finance activities.