Hyperliquid Pushes for Standardized Regulation of Equity Perpetuals

Hyperliquid Policy Center has made a proposal to the US Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), suggesting that equity perpetuals be classified as securities futures. This move is aimed at standardizing the treatment of these financial instruments, which have gained popularity in recent years.

The proposal comes amidst growing interest in perpetual contracts, particularly among cryptocurrency traders. Perpetuals are a type of derivative contract that allows users to trade assets with leverage without actually owning the underlying asset. They often track the price of an underlying asset, such as Bitcoin or Ethereum, but with no expiration date.

Hyperliquid Policy Center's proposal argues that equity perpetuals should be treated similarly to traditional futures contracts, which are already regulated by the CFTC. This would provide clarity and consistency in the regulatory framework surrounding these instruments.