SEC Asked to Approve Pre-IPO Perpetuals for Public Price Discovery

Hyperliquid Policy Center and trade[XYZ] have submitted a joint proposal to the SEC to consider pre-IPO perpetuals, or IPOPs, as a new tool for public price discovery. The contracts provide synthetic exposure to expected listing prices without granting shares, voting rights, dividends, or IPO allocations.

The proposal argues that onchain markets could improve IPO pricing by giving issuers, regulators, and investors a transparent price signal before a stock begins trading. This is particularly relevant as private companies remain private longer, limiting access to early-stage equity gains and leaving public investors with fewer opportunities to participate before valuations mature.

The proposal points to Cerebras as an early example of the effectiveness of IPOP. Its IPOP traded on Hyperliquid before the company listed on Nasdaq, creating a continuous market around expectations for the eventual public share price. Research from Castle Labs reported that the Cerebras market generated $281 million in cumulative notional volume during its 14-day window.

The proposal also asks regulators to clarify how equity-referencing perpetuals should be classified and provide recommendations on disclosure, listing eligibility, oracle and settlement standards, market-integrity safeguards, and a phased framework for U.S. access.