Key Highlights
- Hyperliquid Policy Center submitted formal request for SEC and CFTC to establish harmonized classification standards for perpetual contracts
- Advocacy group proposes contracts be categorized based on economic mechanics rather than underlying reference assets
- Platform’s HIP-3 trading markets recorded more than $480 billion in volume across ten months with open interest reaching $4 billion
- Established exchanges CME and ICE expressed regulatory apprehensions, with CME filing lawsuit against CFTC regarding perpetual futures approval
- President Trump announced CFTC’s active efforts to facilitate Hyperliquid’s entry into U.S. markets through compliant regulatory pathways
The Hyperliquid Policy Center submitted an official comment letter requesting that American financial regulators develop a cohesive regulatory structure for perpetual contract products. The organization advocates for the Securities and Exchange Commission and Commodity Futures Trading Commission to establish consistent treatment protocols for identical financial instruments regardless of jurisdictional authority.
Unlike conventional futures contracts with defined settlement dates, perpetual instruments operate indefinitely. These products employ periodic funding rate mechanisms to maintain price correlation with their reference assets. This distinctive architecture creates regulatory classification challenges within existing American financial law frameworks.
According to the Hyperliquid Policy Center’s position, regulatory categorization should derive from contractual economic characteristics rather than underlying asset types. The advocacy group maintains that perpetual contracts tracking cryptocurrencies, commodities, or equities should receive uniform legal classification regardless of reference market.
The organization further proposed that cash-settled equity perpetuals exhibiting futures-style attributes could appropriately fall under security futures designation. This product classification already exists within both agencies’ regulatory purview.
Ambiguous Rules Generate Litigation Exposure
The HPC contends that absent definitive classification standards, jurisdictional disputes regarding product listing authority across regulated exchanges will inevitably result in legal proceedings. Establishing harmonized regulatory guidelines would enable trading venues to differentiate through market depth and order execution performance rather than exploiting regulatory uncertainty.
This litigation risk has already materialized. CME Group initiated legal action against the CFTC following the commission’s authorization of inaugural domestic perpetual contracts for Coinbase and Kalshi last June. Both CME and Intercontinental Exchange voiced apprehensions that platforms such as Hyperliquid might facilitate market manipulation activities.
The commodity regulator granted approval for these pioneering perpetual products in May. Subsequently, both financial oversight agencies launched public consultation processes examining how current derivatives regulations apply to emerging product innovations.
The Hyperliquid Policy Center additionally recommended that regulators provide exchanges with discretionary latitude regarding product introduction decisions. The organization suggested preliminary guidance could emerge through interpretive releases or staff-level determinations, followed by comprehensive formal rulemaking procedures.
Platform’s Explosive Expansion Captures White House Interest
Hyperliquid processed approximately $3 trillion in notional transaction volume throughout 2025 and has already exceeded $1.5 trillion in the current year. The platform’s product offerings span bitcoin, ethereum, crude oil, precious metals, foreign exchange pairs, equity indices, individual securities and exchange-traded funds.
President Trump referenced the trading venue during recent remarks, indicating CFTC Chairman Michael Selig actively pursues pathways to integrate Hyperliquid within American markets through “fully compliant and legal fashion.”
The platform’s native Hype token appreciated 40% immediately following the presidential statement, based on The Block’s market pricing information.
CFTC Chairman Selig has positioned the regulatory challenge around geographic jurisdiction for perpetual markets rather than fundamental product viability. The commission currently evaluates how existing statutory authority can accommodate these financial instruments within domestic trading infrastructure.
The Hyperliquid Policy Center’s formal submission contributes to ongoing public commentary proceedings as regulatory bodies determine appropriate frameworks for integrating the rapidly expanding perpetuals marketplace under American financial oversight.
