CFTC Weighs Regulating Hyperliquid Energy Perpetuals

Hyperliquid Energy Perpetuals have filed a proposal with the CFTC to enter regulated US markets. The proposal targets contracts tied to WTI crude, Brent crude, and Henry Hub natural gas. Unlike dated futures, perpetual contracts never expire, eliminating the need for regular contract rolls.

The filing argues that current derivatives law already offers a route for Hyperliquid energy perpetuals to enter the market. It cites trade[XYZ]'s $500 billion in volume across over 80 markets as evidence of demand. The CFTC has opened a consultation on the proposal but has not approved these products.

The groups behind the filing, Hyperliquid Policy Center and trade[XYZ], argue that perpetual contracts can help firms respond to weekend hedging gaps. A study reviewed 19 weekend closures and found that in almost 75% of those periods, the onchain closing price better indicated Sunday reopening levels than Friday benchmarks.

The CFTC review examines manipulation, reference prices, margin, clearing, surveillance, customer safeguards, and how 24/7 energy trading could affect physical markets. The filers say public ledgers can assist real-time surveillance, but any operator offering Hyperliquid energy perpetuals would still face market-integrity and customer-protection rules.