Hyperliquid Policy Center and trade[XYZ] Ask CFTC to Allow Energy Perpetual Contracts

The Hyperliquid Policy Center and trade[XYZ] have urged the U.S. Commodity Futures Trading Commission to permit energy perpetual contracts. The two groups say a single federal framework for these products would make market operations more streamlined, deepen liquidity, and put a dent in the dominance traditional exchanges have held for years.

The Request to the CFTC

Energy perpetuals are a type of futures contract that lets traders bet on energy prices without an expiration date. The two organizations want the CFTC to formally allow them under one unified set of rules. Right now, the regulatory path for such products is fragmented, they argue, which forces trading platforms to navigate a patchwork of approvals and compliance hurdles.

In the petition to the commission, the groups argue that a single rulebook would cut down on duplicative oversight and give platforms more clarity on what's allowed. That clarity, they say, is exactly what's missing today.

Why Unified Regulation Would Help Liquidity

The organizations claim that bringing energy perpetuals under one federal umbrella would strengthen the broader market. When platforms aren't chasing different rulebooks across jurisdictions, they can allocate more resources to matching buyers and sellers, which tends to boost liquidity. Deeper liquidity, in turn, makes it easier for traders to get in and out of positions without slipping the price too much.

It's a straightforward argument: simpler rules, more active markets. The groups want the CFTC to be the sole referee, not a patchwork of state and federal authorities.

Taking on the Traditional Exchanges

There's also a competitive angle to the request. The two organizations say unified regulation would give newer, smaller trading platforms a chance to challenge the dominant traditional exchanges. Those established houses already have scale and access, and the groups argue the current regulatory chaos is exactly what's kept new entrants out of the game.

With a clear federal rule in place, the argument goes, any platform meeting the standard can compete head-to-head. That would shake up a market where the old guard has had an easy ride.

The request is now on the CFTC's desk. The commission hasn't publicly addressed the petition, and there's no timeline for when it might rule. Whether the agency picks up the proposal or lets it sit is now the open question.