Hyperliquid’s Daring Dance with the CFTC: A Comedy of Perpetual Futures!
In a most audacious display of regulatory gallantry, the decentralized finance protocol known as Hyperliquid has taken it upon itself to respond to the U.S. Commodity Futures Trading Commission’s (CFTC) recent requests for comment on the rather intriguing subjects of perpetual futures and the delightful notion of 24/7 trading. One can only imagine the CFTC’s surprise upon receiving such a missive! 😄
In a post that appeared on the 22nd of May, the Hyper Foundation, in a fit of enthusiasm, announced that it had dispatched not one, but two letters to the CFTC, all in the noble pursuit of shaping the emerging U.S. regulatory frameworks. The team, with all the confidence of a cat walking on a tightrope, described how Hyperliquid’s (HYPE) onchain system manages to keep the trading wheels turning round the clock, all while maintaining a commendable level of risk controls, user security, and transparency. Quite the juggling act, I must say! 🎪
According to the Hyperliquid folks, their platform is a veritable fortress of risk reduction, employing pre-funded collateral and automatic liquidations like a well-oiled machine. They boast that their system is more open and resilient than traditional markets, as trading occurs continuously, with all trades, margin adjustments, and liquidations laid bare for the public to see onchain. One can only hope the public is wearing its spectacles! 👓
In their remarks on perpetual derivatives, Hyperliquid pointed out that these crypto-native products are already in circulation, offering advantages such as improved liquidity, the absence of rollover requirements, and a simpler integration of smart contracts. Rather than attempting to shove new products into the dusty old boxes of yesteryear, the team urged the CFTC to adopt a flexible regulatory approach that prioritizes risk and user safety. A splendid idea, if I do say so! 🧐
The CFTC’s request for comment, which closed on the 21st of May, was aimed at deciphering the workings of these fast-growing crypto markets and determining whether new rules are necessary. As of now, no new regulations have been announced, but one can only assume the agency is sharpening its quill for future action. 🖋️
With nearly 70% of the monthly trading volume share among decentralized perpetuals platforms, Hyperliquid has emerged as a veritable titan in the market. In May, the platform also reached all-time highs for USD Coin (USDC) total value locked at a staggering $3.2 billion, fees at $5.4 million, and open interest at $8.9 billion. HYPE has soared by 85% in the past 30 days and has risen almost 500% from its April lows. Talk about a meteoric rise! 🚀
The team expressed its hopes of continuing to work with regulators, viewing Hyperliquid as a shining example of how DeFi can enhance modern markets. One can only hope the regulators are taking notes! 📝
Read More
- Vampire’s Fall 2 redeem codes and how to use them (June 2025)
- Clash Royale Best Boss Bandit Champion decks
- CS2 Falcons at Stage 2 of BLAST Austin Major 2025: Mission to survive
- OG and NRG clash at the CS2 BLAST Austin Major 2025 for a St. 2 spot
- BLG vs SEN: VALORANT Masters Toronto results and match recap
- Simply powerful! FaZe are about to crash their way to Stage 3 of CS2 BLAST Austin Major 2025
- Rushing to play big names! Two teams advance early to St. 2 of BLAST Austin Major 2025
- TH vs WOL. The first goodbyes at VALORANT Masters Toronto
- Sentinels vs Wolves: VALORANT Masters Toronto match results and recap
- Team Heretics vs Paper Rex: To kick off VALORANT Masters Toronto 2025
2025-05-23 10:50