CME Group and the New York Stock Exchange (NYSE) have issued a joint call for U.S. regulators to impose federal oversight on Hyperliquid (HYPE), the rapidly growing decentralized exchange (DEX). The move sent the platform's native token, HYPE, into a downward spiral as traders reacted to the heightened regulatory risk.
According to a Bloomberg report, the two financial giants warned that Hyperliquid’s permissionless structure could facilitate market manipulation and sanctions evasion. They specifically highlighted concerns around wash trading, spoofing, and the ability of sanctioned entities to bypass know-your-customer (KYC) and anti-money laundering (AML) checks. CME Group, the world’s largest derivatives exchange, and the NYSE rarely collaborate on such specific calls – their intervention underscores the alarm among traditional market infrastructure providers about unregulated DeFi platforms.
The request arrives as Hyperliquid’s trading volumes have soared, drawing billions in activity. Its native token HYPE has experienced sharp volatility, further fueling the urgency for oversight. If regulators act, the platform could face enforcement actions similar to those seen by centralized exchanges like Binance and Coinbase, potentially setting a landmark precedent for how decentralized protocols are treated under U.S. law.
