Hyperliquid Policy Center urges SEC, CFTC to harmonize rules for perpetual contracts

The Hyperliquid Policy Center argues that perpetual contracts should be classified based on their economic structure — not simply on whether they reference bitcoin, oil or a stock — and says clearer rules could help bring the fast-growing market onshore.In a comment letter published Monday, the HPC urged the U.S. Securities and Exchange Commission and Commodity Futures Trading Commission to adopt a harmonized framework for perpetual contracts."Security futures are a product category that both Commissions oversee and that both SEC- and CFTC-registered exchanges can list. A registrant primarily regulated by one agency can cross over to the other through notice registration, so securities exchanges and futures exchanges may compete in the same product class," the HPC wrote Monday in a post on X. "The product category has been commercially dormant for many years, though U.S. exchanges returned to it this summer, and its framework will need modernization for new product structures."The current framework, however, was designed for products that have been "commercially dormant for many years" and will need modernization to accommodate newer structures, the group said.Without a clear taxonomy, disputes over which regulator's registrants can list a particular product can end up in court, the HPC argued. A harmonized framework, it said, would allow exchanges to compete on "execution quality and liquidity" instead.The debate comes as traditional exchanges push back against the expansion of perpetual contracts in the U.S.Hyperliquid offers perpetual markets tied to a wide range of assets, including bitcoin, ether, oil, gold, currencies, stock indexes, individual stocks and ETFs. Its HIP-3 markets have generated more than $480 billion in trading volume since launching 10 months ago and hold about $4 billion in open interest, according to HPC's letter.Some traditional exchanges, including CME and ICE, have raised concerns that platforms like Hyperliquid could be used to manipulate or distort prices and believe the platform should be registered with the CFTC, according to news reports. In June, the CME sued the CFTC over its decision to allow perpetual futures to trade in the U.S. after the agency approved the first such product for Coinbase and Kalshi.Hyperliquid Daily Perpetuals Volume in USDOverall, Hyperliquid handled nearly $3 trillion in notional trading volume in 2025 and more than $1.5 trillion so far this year.The letter also arrives as Hyperliquid itself has moved closer to the center of the U.S. regulatory debate. President Donald Trump name-checked the platform last week, saying Wednesday that the CFTC was working to bring the onchain perps exchange to the U.S. in a "fully compliant and legal fashion."The (HYPE) token is up 40% since then, according to The Block's price data.Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.© 2026 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.