Hyperliquid Policy Committee Seeks MiCA Changes for Perpetual Contracts

The Hyperliquid Policy Committee has submitted its first regulatory filing outside the United States to respond to the European Commission's review of the Markets in Crypto-Assets Regulation (MiCA). The committee is asking EU policymakers to adapt existing financial rules to on-chain perpetual contracts rather than create a separate regulatory framework.

The HPC argued that crypto products should be classified according to their economic substance and functionality, rather than their technological form. It proposed that on-chain perpetual contracts be addressed through the existing MiFID II framework and ESMA guidance, without requiring new legislation.

The committee also emphasized the importance of distinguishing perpetual contracts from traditional contracts for difference (CFDs). The HPC argued that Hyperliquid-style perpetuals trade through transparent central limit order books, rather than the bilateral structure associated with conventional CFDs. This distinction could affect how on-chain derivatives are offered to European users if the Commission changes or clarifies MiCA-related rules.

The HPC's submission also highlighted the potential for blockchain data to reduce duplicate reporting duties. The committee argued that regulated institutions should not have to submit duplicate reports for information that is already verifiable on-chain, which could reduce compliance costs.