Decentralized Finance Protocol Hyperliquid Submits Feedback to U.S. CFTC on Perpetual Futures and 24/7 Trading

Decentralized finance (DeFi) protocol Hyperliquid has formally responded to the U.S. Commodity Futures Trading Commission (CFTC) regarding recent requests for public comment on perpetual futures and 24/7 trading. The initiative aims to contribute to shaping emerging U.S. regulatory frameworks for cryptocurrency markets.

Hyperliquid’s Commitment to Transparency and Risk Management

Hyperliquid outlined its approach to maintaining robust risk controls, user security, and transparency via its blockchain-based trading system. The platform operates continuously, allowing users to trade 24/7 while ensuring that all transactions, margin adjustments, and liquidations are publicly visible onchain. This model not only enhances openness but also provides resilience compared to traditional financial markets.

The DeFi protocol leverages pre-funded collateral and automatic liquidations to minimize risk for users. This approach ensures that all trading activity is backed by sufficient funds, reducing exposure to potential losses while maintaining operational integrity.

Advantages of Crypto-Native Perpetual Derivatives

In its feedback on perpetual futures, Hyperliquid emphasized the unique benefits of these crypto-native products. Key advantages include:

  • Improved Liquidity: Perpetual derivatives enable seamless trading without the need for contract rollovers.
  • Streamlined Smart Contract Integration: These instruments are inherently compatible with blockchain technology, simplifying implementation.
  • No Expiration Dates: Unlike traditional futures, perpetual contracts remain active indefinitely, offering greater trading flexibility.

Hyperliquid urged the CFTC to adopt a flexible regulatory approach that addresses risk management and user safety while accommodating the innovative nature of these products. The team highlighted that attempting to fit new crypto products into outdated regulatory categories would stifle growth and innovation in the sector.

Hyperliquid’s Market Leadership and Performance

Hyperliquid has emerged as a leading player in the decentralized perpetuals market, capturing nearly 70% of the monthly trading volume among similar platforms. The protocol achieved several milestones in May, including:

  • Total Value Locked (TVL): Reaching $3.2 billion in USD Coin.
  • Fees Generated: Recording $5.4 million in trading fees.
  • Open Interest: Surpassing $8.9 billion.

The native token HYPE also experienced significant growth, surging 85% over the past 30 days and climbing nearly 500% from its April lows. These achievements underscore Hyperliquid’s strong performance and growing influence in the DeFi space.

Collaboration with Regulators for a Better Future

Hyperliquid expressed its willingness to continue collaborating with regulators to promote the adoption of fair and effective policies. The team views its platform as a practical example of how decentralized finance can enhance modern markets by introducing transparency, efficiency, and improved risk management.

“We believe that the future of finance lies in decentralized systems that prioritize user safety and market stability. Hyperliquid is committed to demonstrating how responsible innovation can drive progress in the financial sector.”

The CFTC’s request for comment, which closed on May 21, reflects the agency’s effort to better understand the rapidly evolving crypto markets. While no new regulations have been announced yet, potential actions may be taken to address these emerging trends.

Hyperliquid’s proactive engagement with regulators and its impressive market performance position it as a key player in the ongoing evolution of decentralized finance.

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