Hyperliquid Advocates 24/7 Perpetual Derivatives Trading to CFTC

Hyperliquid, a decentralized perpetuals exchange operating on its own layer-1 blockchain, has formally submitted comments to the United States Commodity Futures Trading Commission (CFTC) advocating for 24/7 perpetual derivatives trading. This move underscores Hyperliquid's commitment to advancing decentralized finance (DeFi) and its potential to create a more open, transparent, and efficient financial system. The company's response to the CFTC's call for public input on perpetual derivatives and 24/7 trading highlights its belief in the importance of thoughtful regulation to maintain the U.S.'s leadership in financial innovation.

Hyperliquid's on-chain system is designed to manage 24/7 trading and perpetuals with automated risk management, on-chain collateral, and public audit trails. These features, according to Hyperliquid, offer stronger protections than traditional setups. The company argues that DeFi, when implemented correctly, can excel in managing risk, protecting users, and ensuring transparency. This approach contrasts with the rigid classifications of traditional financial systems, which Hyperliquid believes could hinder the advancement of decentralized technologies.

The decentralized nature of Hyperliquid's blockchain, which operates continuously without centralized middlemen, aligns well with the always-on nature of crypto markets. This operational model is one of the reasons Hyperliquid believes its platform is well-suited for perpetual derivatives, which offer deep liquidity, improved price discovery, and round-the-clock accessibility. By bringing these tools fully on-chain, Hyperliquid argues that they become easier to monitor, rather than riskier.

Hyperliquid's engagement with the CFTC is a clear statement of its commitment to being a constructive partner in shaping the regulatory framework for DeFi. The company sees regulation not as an obstacle but as an opportunity to contribute to the conversation and ensure that U.S. policy supports the growth of DeFi. By directly engaging with regulators, Hyperliquid is helping to build the rules that will govern its blockchain and the broader DeFi ecosystem.

The submission of these comment letters to the CFTC is a significant step for Hyperliquid, as it positions the company at the forefront of the regulatory dialogue surrounding DeFi. The company's proactive approach to engaging with regulators demonstrates its confidence in the viability and potential of decentralized technologies. As the regulatory landscape for crypto continues to evolve, Hyperliquid's efforts to shape the rules that will govern its operations are likely to have a lasting impact on the future of DeFi.