Hyperliquid Seeks CFTC Approval for Energy Perpetual Contracts

Two prominent players in the crypto space, Hyperliquid Policy Center and tradeXYZ, have urged the U.S. Commodity Futures Trading Commission (CFTC) to establish a regulatory framework for energy perpetual contracts.

The proposal argues that round-the-clock trading could strengthen hedging and price discovery during periods when traditional futures markets are closed.

According to the joint letter, regulated perpetual markets tied to major energy benchmarks such as WTI crude oil, Brent crude, and Henry Hub natural gas would be beneficial.

Unlike conventional futures contracts, perpetuals do not expire and instead rely on funding payments to keep their prices aligned with the underlying asset, allowing traders to maintain exposure without repeatedly rolling positions into new contracts.

The proposal suggests that energy perpetuals should complement rather than replace traditional futures, which remain important for physical settlement and traders seeking exposure to specific delivery months.