HPC and Trade[XYZ] Push for Unified Framework on Perpetual Contracts

Two players in the on-chain derivatives market, the Hyperliquid Policy Center (HPC) and trade[XYZ], have urged the Commodity Futures Trading Commission (CFTC) to allow energy perpetual contracts. In a joint comment letter submitted on August 24, 2026, they argued that perpetual contracts should be regulated based on their economic structure, not the specific asset they reference.

The letter highlights that if the CFTC has already approved the first US-listed perpetual contract in May, there is no reason for different regulatory treatment depending on whether the underlying asset is Bitcoin or West Texas Intermediate crude. The HPC and trade[XYZ] cited substantial numbers: trade[XYZ] reported over $480 billion in cumulative notional volume and roughly $4 billion in open interest in just ten months of operating HIP-3 markets, while Hyperliquid's broader ecosystem processed more than $3 trillion in total market activity during 2025.

The timing of this letter is strategic: the CFTC approved BTCPERP, the first US-listed perpetual contract, on May 29, 2026. The HPC and trade[XYZ] want to extend that same treatment to traditional commodities like crude oil when offered as perpetual contracts on on-chain infrastructure.

Traditional exchanges have expressed concerns about market integrity and competition from these newer venues, but the joint letter argues that a structure-based approach would create a single set of rules for any perpetual contract, regardless of what it tracks. The regulatory landscape is complex, with overlapping jurisdictional questions between the SEC and CFTC.