Hyperliquid Defends Onchain Perps as CME and ICE Push for CFTC Rules
The Hyperliquid Policy Center is defending the blockchain platform’s trading model. This defense comes after reports that major traditional finance exchanges are pushing for strict regulatory crackdowns.
The newly formed advocacy group argues that onchain perpetual contracts (perps) offer unmatched market efficiency and transparency. They believe this model represents the future of secure global asset trading.
Traditional Financial Giants Target Hyperliquid
According to a Bloomberg report, Intercontinental Exchange (ICE) and CME Group are lobbying U.S. regulators. The world’s largest energy exchanges are reportedly raising concerns with lawmakers regarding the risks Hyperliquid may pose.
In particular, these traditional finance giants claim that the blockchain platform could allow the manipulation of global oil prices. As a result, CME and ICE are pressing for Hyperliquid to officially register with the Commodity Futures Trading Commission (CFTC).
Registration would force Hyperliquid to implement strict customer tracking, enforce trade monitoring, and operate directly under U.S. regulatory oversight.
Why Traders Choose Hyperliquid for Commodities
Hyperliquid is a decentralized, onchain perps exchange that has rapidly gained popularity. A major driver of this growth is its ability to offer continuous, 24/7 commodities trading.
Traditional markets close on weekends, but asset prices continue to react to global events. The Hyperliquid Policy Center noted that continuous trading eliminates gaps between legacy market hours, which vastly improves price discovery for all global participants.
The platform’s growth is heavily fueled by oil and metals trading. This rising traction led investment firms 21Shares and Bitwise to launch exchange-traded funds (ETFs) tied to Hyperliquid’s native HYPE token.
Onchain Transparency vs. Market Manipulation
In response to manipulation claims, the Hyperliquid Policy Center argues that public blockchains are inherently hostile to bad actors.
- The platform publishes a complete, real-time record of every single transaction directly on the blockchain.
- This extreme level of transparency serves as a powerful deterrent against insider trading and price manipulation.
- The open-source data allows regulators and law enforcement to monitor and detect misconduct much faster than in traditional markets.
However, the advocacy group pointed out a major structural issue: current U.S. derivatives laws are outdated and not tailored for public, decentralized blockchains.
The Growing Battle for Crypto Derivatives Market Share
Despite its recent surge in popularity, Hyperliquid still handles only a fraction of the volume seen on centralized platforms like Binance.
Currently, major crypto exchanges like Binance, Coinbase, and Kraken are all expanding their offerings to include traditional assets like oil. However, regulatory hurdles have caused these exchanges to launch derivatives products much slower inside the U.S. compared to international markets.
Meanwhile, traditional giants like ICE are also hedging their bets. ICE is a major financial backer of Polymarket, a crypto prediction venue seeking full CFTC approval to offer commodities-linked binary contracts to U.S. users.
