Hyperliquid Policy Center is pushing back against concerns raised by CME and ICE, two of the world's largest derivatives exchanges. The exchanges have been pressing the Commodity Futures Trading Commission to scrutinize onchain perpetual futures — known as perps. Hyperliquid argues its real-time record-keeping actually improves market transparency, not undermines it.
The pressure from CME and ICE
CME and ICE are urging the CFTC to take a closer look at onchain perps, a type of crypto derivative that lets traders speculate on price without an expiration date. The traditional exchanges worry these products operate outside the regulatory framework that applies to their own markets. They’ve asked the agency to clarify how existing rules apply — or whether new ones are needed.
Hyperliquid’s transparency argument
Hyperliquid counters that its blockchain-based system offers something CME and ICE can’t match: a permanent, public ledger of every trade. The company says this real-time data gives regulators and market participants more visibility into positions and risk than traditional off-chain clearing does. In its view, that makes onchain perps less of a threat and more of an upgrade.
What’s at stake for the CFTC
The CFTC now faces competing narratives. CME and ICE represent decades of established derivatives markets, while Hyperliquid represents a newer, decentralized approach. The agency hasn’t signaled which direction it leans. Its decision could shape how onchain derivatives are treated in the U.S. — whether they’re folded into existing rules or left to develop their own framework.
The broader debate over onchain derivatives
This isn’t just about perps. It’s about whether real-time, immutable records satisfy transparency requirements better than periodic reporting. Traditional exchanges argue that off-chain oversight lets them catch abuse faster. Hyperliquid says its ledger does the same thing, but with full auditability. Regulators will have to weigh these claims against each other.
The CFTC has not yet issued a formal response to either side. Industry observers expect the debate to intensify as more onchain products emerge and as the agency finalizes its regulatory priorities for the year.
