Hyperliquid Policy Center Urges SEC, CFTC to Harmonize Perpetuals Rules

Hyperliquid Policy Center has urged U.S. regulators to create consistent rules for perpetual contracts. Clearer classification could provide a path for more perpetual markets to operate under U.S. regulatory oversight.

Hyperliquid Policy Center Seeks Common Perpetuals Classification

Hyperliquid Policy Center filed a comment asking the SEC and CFTC to coordinate their treatment of perpetual contracts. The group wants classification to depend on each contract’s structure and how the product trades.

Federal law generally divides derivatives into futures and swaps. However, perpetual contracts share features with both categories, which has created uncertainty over their treatment under U.S. law. Unlike conventional futures, perpetuals have no fixed expiration date. Funding payments instead help keep their prices aligned with the referenced assets.

The group said the underlying asset should determine which regulator oversees a contract. However, the reference asset should not change whether the product qualifies as a future or swap. Under this approach, similar perpetual contracts would receive the same classification across different markets.

For equity perpetuals, cash settled contracts with traditional futures characteristics could qualify as security futures. Both the SEC and CFTC oversee this product category. Registered securities and futures exchanges can also list security futures under the existing framework.

SEC and CFTC Review Treatment of Perpetual Contracts

The regulatory debate follows recent steps by both agencies to address the growing perpetuals market. In May, the CFTC approved the first U.S.-listed perpetual contracts and permitted them to trade as futures.

Meanwhile, the SEC and CFTC have sought feedback on how existing derivatives rules apply to newer products. Regulators are considering definitions covering swaps, security based swaps, futures and security futures. One question is whether cash-settled equity perpetuals can qualify as security futures.

Hyperliquid Policy Center also asked regulators to preserve flexibility for exchanges when making product listing decisions. In addition, the group called for updates to the security futures framework to accommodate newer contract structures.

Regulators could provide initial clarity through interpretive guidance, policy statements or staff action. Formal rulemaking could follow as the agencies gain more experience with perpetual markets.

Hyperliquid U.S. Expansion Remains in Focus

The proposal comes as U.S. officials consider bringing more perpetual trading under domestic oversight. President Donald Trump recently said CFTC Chairman Michael Selig is working on a compliant path for Hyperliquid to enter the United States.

“I understand Mike is also working to bring Hyperliquid into the United States in a fully compliant and legal fashion,” Trump said.

More than $480 billion in perpetual contract volume has traded through Hyperliquid markets over the past ten months, the policy group said. Trading has covered commodities, currencies, equity indices and individual stocks.

Selig has framed the issue around where perpetual markets operate rather than whether they will exist. The CFTC is now considering how its existing authority can accommodate these products within U.S. markets.

For more insight into retail focused derivatives, traders can compare features and markets on a dedicated perpetual futures trading platform before committing capital.