- Hyperliquid's policy arm urges the SEC and CFTC to create a unified framework for perpetual contracts.
- The exchange proposes classifying eligible equity perpetuals as security futures, citing over $480B in trading volume.
- Recent comments from President Trump suggest the CFTC is actively working on a legal entry path for Hyperliquid.
- HYPE token reaches an all-time high, yet faces a major token unlock valued near $1.2B.
The regulatory landscape for perpetual contracts is shifting as Hyperliquid, a leading decentralized derivatives exchange, intensifies its engagement with U.S. authorities. Over the past weeks, its policy branch has submitted formal requests to both the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to clarify how these popular crypto derivatives should be classified and supervised. The move comes at a time when Washington is grappling with the industry’s rapid growth, and the absence of a clear legal path has pushed significant activity offshore.
In parallel, market observers have seen Hyperliquid’s native token, HYPE, notch a fresh all-time high amid optimistic expectations that a favorable regulatory outcome might soon emerge. Meanwhile, the exchange has not been shy about proposing concrete solutions. From establishing a joint classification for certain perpetuals to a novel concept of pre-IPO perpetuals, the platform is trying to shape its own regulatory future. The following breaks down the key proposals and what they mean for the broader cryptocurrency market.
Unified Regulatory Framework for Perpetuals
Hyperliquid Policy Center, the project’s public policy branch, has put forward a detailed request asking the SEC and CFTC to harmonize their disjointed approaches toward perpetual contracts. The center argues that the current fragmented oversight leads to conflicting requirements and leaves both platforms and customers uncertain. They are recommending that the two agencies work together to establish a single classification system, which would prevent regulatory arbitrage and give market participants much-needed predictability.
According to the proposal, a perpetual contract that settles in cash and trades on a centralized or decentralized order book should be treated like a security future if it meets the traditional futures criteria — that is, it is standardized, fungible, and allows for offsetting positions. This classification would allow the SEC and CFTC to jointly supervise such products, using the framework that already exists for equity-linked futures. The approach would be particularly important for contracts tracking single stocks, which would then be regulated under the security futures umbrella.
Supporting data from Hyperliquid’s HIP-3 markets, which facilitate perpetuals on a variety of assets, shows over $480 billion in notional volume was traded in just ten months, with roughly $4 billion in open interest. The center believes that such volume demonstrates a strong demand for these derivatives, and that a clear U.S. legal path would only help to channel this activity to regulated venues.
Trump Endorsement and Market Reaction
Adding a layer of speculation, President Donald Trump recently mentioned during a meeting with crypto executives that the CFTC is working on a legally compliant entry for Hyperliquid. The statement, made during a White House gathering with Coinbase, Ripple, and Robinhood leadership, came just days before the agency’s Innovation Advisory Committee meeting. While not an official approval, the market’s reaction was immediate, with HYPE posting an intraday jump of more than 11%, pushing its price into record territory.
The positive sentiment has also been supported by the token’s ongoing rally. As of the latest data, HYPE trades at about $79.66 after touching an all-time high of $82.37. Its market cap has surged to around $20 billion, and trading volumes have been exceptionally high, doubling their average. That said, the token faces a upcoming event that could test its resilience: a large token unlock scheduled for the coming weeks, valued at roughly $1.2 billion. Historically, unlocks often lead to sell pressure, but so far the market has been absorbing the news positively.
Looking Beyond the Token Price
Beyond the price and unlock, Hyperliquid is also pushing forward with another innovative idea: using perpetual contracts to improve the pre-IPO process. In a joint letter to the SEC, the policy center proposed the concept of “pre-IPO perpetuals,” which would allow investors to trade the expected price of a company before its actual IPO. These instruments would not grant ownership or voting rights, but would offer a price-discovery signal. The proposal argues that this could reduce the discrepancies often seen between the IPO price and the opening market price, which historically has left money on the table for issuers.
The company also hopes to address the existing ambiguity regarding the definition of a “swap” versus a “future,” which has been a grey area for years. By proposing a clear hierarchy—first looking at the structure and trading mechanism, then at the underlying asset—they aim to give both regulators and exchanges a predictable path. While the response from the SEC and CFTC is still awaited, the very act of engaging with regulators and presenting data-rich arguments is a sign of maturity.
However, challenges remain. Implementing such a classification would require a coordinated effort between agencies, and a genuine willingness to adopt a consistent approach. The outcome could have far-reaching implications not only for Hyperliquid but for the entire market of decentralized finance and derivatives. As the industry awaits further regulatory guidance, the market will be watching the agency’s next moves, especially with the pending token unlock as a barometer for real demand.
In essence, Hyperliquid is positioning itself at the intersection of innovation and regulation. Its proactive efforts to define perpetual contracts within the U.S. framework, combined with recent political signals and a surge in market activity, suggest that the future of these derivatives could be shaped in the coming months. Whether the token can maintain its momentum depends on how the market absorbs the supply and whether regulators actually translate their stated intentions into concrete action.
