The Hyperliquid Policy Center and perpetuals infrastructure firm TradeXYZ have jointly filed a comment letter with the U.S. Commodity Futures Trading Commission (CFTC), calling for a regulate
The Hyperliquid Policy Center and perpetuals infrastructure firm TradeXYZ have jointly filed a comment letter with the U.S. Commodity Futures Trading Commission (CFTC), calling for a regulated framework that would bring energy perpetual contracts to American markets.
The two groups have requested the CFTC create a regulatory framework for 24/7 trading of energy perpetual contracts linked to benchmarks like WTI crude, Brent crude, and Henry Hub natural gas.The letter responds to a CFTC consultation on perpetual contracts for physically deliverable energy assets that opened in June, with the comment period extended to August 26.
The central argument rests on a gap that traditional futures markets cannot fill. Perpetual contracts, which do not expire and allow continuous exposure, could improve hedging and price discovery during times when traditional futures markets are closed.The Hyperliquid Policy Center and TradeXYZ pointed to disruptions in global supply chains in the Middle East after the U.S. and Israel conducted missile strikes on Iran, which triggered supply shocks.
The data presented in the letter is striking. Investors outside the U.S. traded crude oil perpetual contracts on Hyperliquid, with about two-thirds of weekend price moves reflected first in on-chain markets. In roughly 75% of the weekend closures studied, perpetual prices were closer to the Sunday reopening price than to Friday's close.
Continuous trading could give airlines, refiners, funds, and other businesses another way to manage sudden changes in energy prices, allowing them to adjust their exposure without waiting for traditional futures markets to reopen.
The groups are not seeking to displace existing markets. They said perpetual contracts should trade alongside standard futures rather than replace them, with dated futures continuing to serve traders who need specific delivery months or physical settlement.
They asked for a framework that would be technology-neutral and based on principles, as well as for the CFTC to clarify what a business day means in terms of timing requirements.With leverage limits and added safeguards, the groups also proposed recognising stablecoins and real-world assets as derivatives margin under the existing Commodity Exchange Act framework.
The push fits a broader effort to bring Hyperliquid's offshore volume under U.S. oversight. TradeXYZ, identified as the largest external operator of perpetual markets on Hyperliquid, has operated those markets since October 2025, and they have generated over $500 billion in cumulative trading volume. The filing follows a wider regulatory push from CFTC Chairman Michael Selig, who has argued that "the question was never whether crypto asset perpetual contracts would exist" but "whether they would exist under American oversight, American standards and American rule of law."
Sources:The Block: Hyperliquid Policy Center, TradeXYZ urge CFTC to create path for US oil perpetualsCoinGape: Hyperliquid and TradeXYZ Seek CFTC Path for Energy Perpetuals in U.S. MarketsDechert: CFTC Takes Historic Steps to Bring Digital Commodity Perpetual Contracts Onshore
