EU Urged to Regulate Perpetual Futures as Derivatives

Hyperliquid's Policy Center has called on the European Union to regulate perpetual futures as derivatives. In a recent submission to the EU's consultation on revisions to the Markets in Crypto-Assets regulation, or MiCA, Hyperliquid argued that existing financial rules should be adapted to fit the characteristics of on-chain markets. This would involve using ESMA guidance to incorporate perpetual futures contracts into the MiFID II supervisory framework.

Hyperliquid's proposal aims to balance investor protection with access to global markets. The company argues that overly restrictive regulations could isolate EU investors from global liquidity, and instead suggests designing regulation around a product's underlying characteristics and risks.