The Washington, D.C.-based policy team for decentralized exchange Hyperliquid (HYPE) has moved quickly to address a new regulatory pressure campaign described in a Friday report by Bloomberg.
CME Group and Intercontinental Exchange (ICE) are reportedly lobbying the Commodity Futures Trading Commission (CFTC) and US lawmakers to push for federal oversight of the platform, arguing that its current operating environment could be vulnerable to issues such as market manipulation and sanctions evasion.
CME And ICE Urge Hyperliquid CFTC RegistrationThey argue that anonymous trading settings may allow actors with private information—or participants tied to insider or state-linked influence—to distort prices that are used across markets.
CME and ICE’s stated ask, per Bloomberg, is straightforward: Hyperliquid should register with the CFTC. That registration would typically require the platform to adopt customer identification programs and implement trade surveillance measures.
In response, the Hyperliquid Policy Center (HPC), led by CEO Jake Chervisnky, pushed back publicly. On social media site X (formerly Twitter), the recently established organization affirmed the criticisms are “unfounded.”
The ‘Anti-Manipulation Shield’In the policy center’s view, that level of visibility makes it a hostile environment for insider trading or price manipulation, while also giving regulators and law enforcement clearer material for surveillance, detection, and investigation.
The Hyperliquid Policy Center also said Bloomberg is broadly right about one key point: US law is not yet tailored to derivatives markets operating on public blockchains like Hyperliquid. The group said it plans to keep working with policymakers in Washington to bring on-chain markets inside the regulatory perimeter.
At the time of writing, Hyperliquid’s native token, HYPE, was trading at $44.60. This represented gains of 1.6% and almost 4% in the 24-hour and seven-day time frames, respectively.
Featured image created with OpenArt, chart from TradingView.com
