Hyperliquid Labs has written two comment letters to the US Commodity Futures Trading Commission (CFTC) in response to the latter’s recent Requests for Comment (RFC) on the regulation of perpetual derivatives and 24/7 crypto market trading.
Hyperliquid Labs Comments on CFTC’s Perpetual Swaps RFC
Hyperliquid Labs, a key contributor to the Hyperliquid blockchain, praised the Commission’s willingness to engage with emerging technologies and offered a comprehensive case for how DeFi can enhance market transparency, efficiency, and user protection.
Hyperliquid’s letters stressed upon the basic principles that make DeFi compelling i.e., transparency, self-custody, composability, and open access. The team highlighted the USPs of on-chain perpetual derivatives, including verifiable audit trails, sub-second finality, and user-controlled wallets that eliminate counterparty risk.
Crucially, Hyperliquid Labs advocated for a principles-based regulatory framework that evaluates risk profiles and safeguards consumers without stifling innovation through overly rigid classifications.
Their regulatory engagement comes at a time when crypto ventures from leaders (for e.g., $TRUMP and $MELANIA memecoins) have garnered all kinds of comments from mainstream media. Recently, Senator Elizabeth Warren called for greater control of crypto, especially following controversial crypto-related ventures involving public figures such as President Donald Trump. Warren, who also serves on the Senate Banking Committee, requested the US Office of Government Ethics and relevant regulatory bodies to examine the legal implications of such ventures.
Unlike speculative memecoin projects that have prompted both criticism and scrutiny from lawmakers, Hyperliquid Labs says it offers a model of how well-functioning, transparent, and compliant DeFi firms can contribute immensely to the US financial system. With working infrastructure, real-time trading, and clear operational logic, Hyperliquid has stated that it stands as a counterpoint to the narrative that crypto is inherently risky or unregulated.
The move is in an effort to align with CFTC’s actions to shape the crypto rules. In April, CFTC had requested public comment on perpetual contracts and 24X7 crypto derivatives, including those characteristics which may differ across products.
Apart from Hyperliquid Labs,the Futures Industry Association (FIA) too responded to CFTC’s request. FIA has also recommended that the Commission collect input from advisory committees, industry experts, and the public before proposing formal rules. Also, the FIA raised concerns about the current self-certification process, which allows exchanges to list new perpetual products with minimal control. They urged the CFTC to consider bringing in clear limitations and obligations for such products and to codify them in the rules. This would ensure proper compliance through established certification procedures.
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