Key points
- On Thursday, the Solana Policy Institute submitted comments urging the CFTC to update outdated rules that create obstacles to blockchain-based innovations.
- In the filing, the Solana Policy Institute urged regulators not to classify non-custodial front ends as intermediaries simply for allowing users to submit transactions.
- The response comes after the Commodity Futures Trading Commission (CFTC) in June 2026 asked the public to promote fintech innovations.
On July 9, the Solana Policy Institute submitted its response to the US Commodity Futures Trading Commission’s (CFTC) request for public input on barriers to fintech innovation.
In the official document, the non-profit organization cited the need to update outdated regulatory frameworks to support blockchain-based markets and non-custodial interfaces such as wallets.
Solana Policy Institute Mentioned In response, “These comments focus on three areas where targeted clarification would facilitate innovation and competition without impairing market integrity, customer protection, financial soundness of transactions, or Commission oversight. The Commission has practical tools it can use now, including guidance, no-action relief, declaratory relief, and CEA Section 4(c) relief, to achieve these goals.”
The CFTC recommends: Stop dealing with non-custodial cryptocurrencies like banks
In its filing, the Solana Policy Institute mentioned several 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 tools that allow users to prepare and submit their own transactions.
The Solana Policy Institute asserted that CFTC rules must change to align with 24/7 on-chain markets, real-time risk management, and immutable on-chain ledgers that provide transparency compared to traditional systems.
SPI has urged the agency to create frameworks that recognize distinct operating models for decentralized protocols. “The Commission should publish guidance, or provide permanent relief, clarifying that an independent software vendor, technology services vendor, wallet provider, or front-end provider is not required to register as an IB, and that its employees are not required to register as access points, solely because the provider offers non-custodial software that helps users prepare, sign, and send their own transactions to a registered venue or smart contract protocol,” the filing said.
This commentary is similar to industry-wide efforts, including joint comments from groups such as the Hyperliquid Policy Center and Phantom. The blockchain industry raises objections to the imposition of intermediary status on non-custodial instruments and on-chain protocols.
Response also highlights the fastest blockchainSolana, urges the CFTC to consider how on-chain data can simplify compliance, reporting and oversight without creating any kind of burden in the financial market.
The CFTC issued its request for information on June 26, in the aftermath Executive Order 14405. The order directs regulators to review rules that may hinder fintech partnerships with regulated entities or create unnecessary hurdles for small businesses and startups. The agency is seeking public comment on regulations, guidance, no-action letters, and processes that could be updated to promote innovations in derivatives markets, digital asset integration, and fintech collaboration with future commission dealers and other brokers.
The Solana Policy Institute supports regulators to create frameworks for blockchain-based innovations
SPI is a nonpartisan, nonprofit organization that educates policymakers about decentralized networks like Solana. In the past, the organization has played a role in many regulatory discussions. For example, it recently filed a response to the CFTC’s proposals on prediction markets in April 2026. Apart from that, it filed a legal document on backlog taxes alongside the Blockchain Association and others in May 2026.
In February 2026, the Solana Policy Institute and its partners submitted comments to the Securities and Exchange Commission regarding cryptocurrency trading platforms. Earlier, they addressed the Treasury Department The law of genius Implementation and methods for detecting illicit financing activities.
