Hyperliquid Policy Center Urges CFTC to Allow US Energy Perpetual Futures
- The Hyperliquid Policy Center and TradeXYZ said they asked the CFTC to create a regulatory framework that would allow trading in energy-asset perpetual futures in the US.
- The two groups said 24-hour on-chain markets can serve as a risk-management tool during disruptions in energy markets, and that traditional dated futures and perpetual futures should be allowed to trade alongside each other.
- With the CFTC already reviewing the potential launch of Bitcoin perpetual futures and crude oil perpetual futures, HPC said it will continue discussions aimed at expanding access to on-chain perpetual futures markets under US regulatory oversight.
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The Hyperliquid Policy Center, or HPC, and perpetual futures trading platform TradeXYZ have asked the US Commodity Futures Trading Commission to establish a regulatory framework that would allow perpetual futures tied to energy assets such as crude oil to trade in the US.
The Block reported on August 26 that HPC and TradeXYZ made the case in a comment letter to the CFTC. Perpetual futures are derivatives with no expiration date, allowing traders to bet on price moves without directly holding the underlying asset.
The two groups pointed to energy-market turmoil earlier this year after US and Israeli strikes on Iran. They said supply-chain disruptions in the Middle East hit over a weekend, when traditional crude futures markets were closed, while 24-hour on-chain venues such as Hyperliquid continued operating.
“US companies should not have to wait until Sunday evening to manage risk if another crisis erupts on a Saturday night,” HPC wrote, arguing for the need for energy derivatives that trade around the clock.
The CFTC has already shown openness to perpetual futures in the US. In May, CFTC staff allowed KalshiEX and Coinbase to list Bitcoin perpetual futures. In June, the agency sought public comment on crude oil perpetual futures and 24-hour trading.
HPC and TradeXYZ said they are not proposing to replace traditional dated futures with perpetual contracts. Instead, they argued the two products should be allowed to trade alongside each other under regulation. They also called for a principles-based framework not tied to a specific technology and asked the CFTC to clarify how the term “business day” should apply across rules in a 24-hour trading environment.
Earlier this week, HPC also submitted a letter to the CFTC and the US Securities and Exchange Commission calling for coordination between the two agencies on perpetual futures oversight. The group said President Donald Trump last week cited CFTC Commissioner Michael Selig’s effort to bring Hyperliquid to the US market in a “fully compliant and legal manner.”
HPC said it is focused on giving US market participants access to on-chain perpetual futures markets under the supervision of US authorities and will continue discussions with the CFTC.
