Hyperliquid Defends On-Chain Perps as ICE, CME Seek CFTC Oversight

The Hyperliquid Policy Center, a Washington-based advocacy group led by crypto lawyers and lobbyists, defended on-chain perpetual futures after Intercontinental Exchange and CME Group urged the Commodity Futures Trading Commission to require Hyperliquid to register, citing concerns about potential manipulation of global oil prices.

The center said Hyperliquid operates a blockchain-based perpetuals exchange that runs continuously, including off-market hours and weekends, and that round-the-clock trading can reduce pricing gaps when traditional exchanges are closed.

The Policy Center wrote: “Hyperliquid offers enhanced market transparency, publishing a complete onchain record of every transaction in real time, making it a uniquely hostile environment for insider trading or price manipulation.” It added that such transparency “facilitates surveillance, detection, and investigation by regulators and law enforcement.”

Registration with the CFTC would require Hyperliquid to expand customer identification checks, transaction monitoring and trade reporting to meet standards used by regulated futures venues, according to industry descriptions of registration requirements.

Supporters of CFTC oversight say stronger monitoring would help detect trading that could influence benchmark prices. Hyperliquid representatives argue the platform’s open ledger gives regulators and investigators direct access to a full trade history, which they say eases detection of abusive patterns.

Market data show Hyperliquid's trading volumes remain a fraction of the largest centralized crypto exchanges. Several centralized platforms have added oil-linked trading products, and U.S. venues have generally been slower to introduce new derivatives than some foreign counterparts.

This week, two asset managers launched exchange-traded funds tied to Hyperliquid exposure, citing increased oil and metals trading on the platform.

Separately, ICE holds an investment stake in a prediction-market operator that is pursuing full CFTC approval to operate in the United States, reflecting legacy exchanges' wider involvement in crypto-adjacent markets.

The Policy Center noted that U.S. derivatives law was not written with public blockchains in mind. Regulators must decide how existing registration and surveillance rules apply to trading systems built on open ledgers and continuous market hours.