Hyperliquid responds to CFTC’s request for comment on perpetuals and 24/7 trading

Decentralized finance protocol Hyperliquid submitted formal responses to the U.S. Commodity Futures Trading Commission’s recent requests for comment on perpetual futures and 24/7 trading.

In a May 22 Medium post, the Hyper Foundation said it submitted two letters to CFTC to help shape emerging U.S. regulatory frameworks. The team described how Hyperliquid’s (HYPE) onchain system already manages trading 24/7 while upholding strong risk controls, user security, and openness.

According to Hyperliquid, its platform lowers risk by utilizing pre-funded collateral and automatic liquidations. The system is more open and resilient than traditional markets because trading occurs continuously and all trades, margin adjustments, and liquidations are visible to the public onchain.

Hyperliquid noted in its remarks on perpetual derivatives that these crypto-native products are already in use and provide advantages like improved liquidity, no rollover requirements, and simpler smart contract integration. Rather than trying to force new products into outdated categories, the team urged the CFTC to adopt a flexible regulatory approach that prioritizes risk and user safety.

The CFTC’s request for comment, which closed on May 21, was aimed at understanding how these fast-growing crypto markets work and whether new rules are needed. No new regulations have been announced yet, but the agency may take action in the future. 

With almost 70% in monthly trading volume share among decentralized perpetuals platforms, Hyperliquid has emerged as a market leader. In May, the platform also reached all-time highs for USD Coin (USDC) total value locked at $3.2 billion, fees at $5.4 million, and open interest at $8.9 billion. HYPE is up 85% in the past 30 days, and has risen almost 500% from its April lows.

The team said it hopes to continue working with regulators and sees Hyperliquid as a working example of how DeFi can improve modern markets.