Hyperliquid Policy Center Backs CFTC in Perpetual Futures Contracts Lawsuit

The Hyperliquid Policy Center has filed an amicus brief in support of the Commodity Futures Trading Commission (CFTC), urging the U.S. District Court for the District of Columbia to dismiss a lawsuit brought by CME Group.

CME Group had argued that perpetual futures contracts, which have no expiration date and allow investors to trade based on price movements without purchasing the underlying asset, compete directly with its own futures offerings and cause harm to the company.

The Hyperliquid Policy Center counters that CME's claims of competition and injury do not establish legal standing. They argue that the CFTC's decision does not fragment the existing market, but rather brings in new participants who did not previously trade in futures contracts.

If CME wins, the innovation process in U.S. futures markets could slow down significantly, according to Elizabeth Prelogar, representing the Hyperliquid Policy Center. She notes that if every new product approved by the regulator faces lawsuits from existing exchanges, innovation will grind to a halt.