What to know:
- Don’t require protocol publishers to register as exchanges, let licensed firms use onchain rails like HyperCore for perps, and make wallet no-action relief permanent.
- Perps did $61.7T volume in 2025 per CryptoQuant but are geo-blocked in the U.S.
- Harmonizing SEC/CFTC rules clears the path for exchanges, institutions, and developers.
The Hyperliquid Policy Center has proposed a harmonization of regulation between SEC and CFTC for crypto perpetual futures, a move that brings the offshore-dominated derivatives markets closer to the US.
The letter to the agencies also included Phantom’s input and addressed their June 18 Request for Information. Legacy market structure was criticized as incompatible with onchain infrastructure.
Hyperliquid’s Recommendations
Lead by Jake Chervinsky, CEO of the Center, the proposals are basically asking the regulators to clarify that the mere fact of providing protocol software shouldn’t be sufficient to classify an entity either as an exchange, clearinghouse, or a broker.
The request also includes that the CFTC permit registered entities to execute and clear transactions through rails similar to HyperCore and that March no-action relief should be adopted as precedent for wallet companies like Phantom that facilitate the access to regulated markets.
Also Read: CFTC Chair Says Crypto Rules Will Advance Without CLARITY Act
Why harmony is necessary
as CryptoQuant, perpetual futures volume hit $61.7 trillion in 2025, outgrowing the $18.6 trillion worth of spot trades. Hyperliquid is one of the top platforms for such trading. Still, U.S. investors are geo-blocked since perpetuals remain in the legal gray area.
Also Read: Ripple CEO Backs Progress Toward Clear U.S. Crypto Rules
The Broader Setting and Further Actions
In line with this, the CFTC approved BTCPREP of Kalshi and allowed Coinbase to route customers to Deribit, whereas CME claimed perps are swaps against the CFTC.
Following SoSoValue data showing spot Bitcoin ETF inflows to have exceeded $50 billion since January 2024 and tokenized reserves gaining momentum, HPC’s plan aligns DeFi to move toward users.
Source: WSJ
The joint rules making and permitted HIP-3 rollouts might become the blueprint for the way KYC is going to be done by the intermediaries while blockchain settlement will work out.
Also Read: HYPE Price Eyes $150 Breakout as Hyperliquid Futures Expand on Base App
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