Hyperliquid Pushes Regulators to Harmonize Perpetual Contract Classification

The Hyperliquid Policy Center has submitted a proposal to the US Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) to adopt a shared framework for classifying perpetual contracts. This move aims to end long-running jurisdictional fights over novel derivatives and bring onshore $480 billion in trading volume that currently takes place offshore.

The proposal argues that a consistent taxonomy across both regulators would provide clarity and consistency, allowing traders to access and participate in perpetual contracts safely. Unified rules may also lower compliance costs, enabling more US investors to engage with these products.

HPC is seeking four key steps from the SEC and CFTC: confirming the security future definition incorporates hallmarks of futures contracts, preserving flexibility for trading venues, keeping classification consistent across both agencies, and modernizing the security futures framework. These changes can be delivered through interpretive guidance, policy statements, or staff-level action.

By harmonizing the classification process, regulators aim to prevent market fragmentation, preserve jobs and innovation in domestic trading platforms, and address the long-standing issue of novel derivatives straddling the boundary between futures and swaps. The filing lands as regulators, exchanges, and courts continue to grapple with the threshold question about perpetual contracts.