Hyperliquid, a decentralized finance protocol, is currently engaged in discussions with the U.S. Commodity Futures Trading Commission (CFTC) to ensure regulatory compliance for its operations. As of May 23, 2025, the company has formally submitted letters addressing the CFTC's requests for comment on perpetual futures and 24/7 trading capabilities.
The CFTC's requests, issued on April 21, 2025, seek to understand emerging crypto market dynamics and whether new regulatory frameworks are required. Hyperliquid's response highlights how its on-chain system already supports continuous trading with robust risk controls, user security, and transparency, all while lowering risk through pre-funded collateral and automatic liquidations.
Amid this regulatory engagement, Hyperliquid's native token, HYPE, has reached record highs, driven by market confidence in the project's proactive compliance efforts, despite some large holders divesting. The platform has also achieved all-time highs for key metrics including $3.2 billion in USD Coin (USDC) total value locked, $5.4 million in fees, and $8.9 billion in open interest.
The Hyper Foundation emphasized that crypto-native perpetual derivatives offer significant advantages such as improved liquidity, no rollover requirements, and easier smart contract integrations. They encouraged the CFTC to adopt a flexible regulatory approach focusing on managing risk and ensuring user safety rather than forcing new products into outdated regulatory categories.
These developments position Hyperliquid as a compliant and market-leading decentralized perpetual futures platform in the U.S., signaling broader industry movement toward regulatory clarity, market stability, and increased institutional interest.