The Hyperliquid Policy Center has called on U.S. regulators to reclassify perpetual contracts using their economic structure rather than the assets they reference, arguing current frameworks are outdated and risk regulatory disputes. The proposal, outlined in a Monday statement, urges the SEC and CFTC to adopt a harmonised approach to address gaps in oversight for evolving financial instruments.
Hyperliquid’s HIP-3 markets, which generated $480 billion in trading volume over 10 months and hold $4 billion in open interest, have drawn attention from regulators and traditional exchanges. The firm reported handling $3 trillion in notional trading volume in 2025 and $1.5 trillion so far this year, underscoring the scale of its operations.
The HYPE token, associated with Hyperliquid, rose 40% in value following a public reference to the platform by U.S. President Donald Trump, though the causal link between the statement and the price movement remains unclear. Traditional exchanges including CME and ICE have raised concerns about potential market manipulation, while Coinbase and Kalshi recently secured CFTC approval for their own perpetual futures products.
A Hyperliquid Policy Center statement noted that “security futures are a product category that both Commissions oversee… its framework will need modernisation for new product structures.” The proposal highlights risks of regulatory fragmentation as crypto markets expand, though the extent of regulatory pushback from established exchanges remains uncertain.
Written by Oliver Grant
Markets Desk
