HPC Urges EU Regulators to Classify Crypto Perpetuals as Derivatives

The Hyperliquid Policy Center (HPC) has submitted recommendations to the European Commission as part of its MiCA review. The group is urging the EU to apply the existing MiFID II derivatives framework to crypto perpetuals, rather than classifying them primarily through the Markets in Crypto-Assets Regulation (MiCA).

HPC argues that regulatory classification should depend on a product's structure and economic characteristics rather than the blockchain used. Perpetual futures are derivative contracts that provide exposure to an underlying asset without a fixed expiry date.

According to HPC, applying MiFID II rules would allow regulators to assess onchain perpetuals using the same principles applied to other financial derivatives. This approach is consistent with existing ESMA guidance, which notes that derivatives referencing crypto-assets can fall within the MiFID II framework.