Quick Take
- In the letter, the Hyperliquid Policy Center and TradeXYZ pointed to disruptions in global supply chains in the Middle East earlier this year after U.S. and Israel conducted missile strikes on Iran, which triggered supply shocks.
- Specifically, they asked for a framework that would be “technology neutral” and based on principles, as well as for the CFTC to clarify what a business day means in terms of timing requirements.
We'd love your feedback.
The Commodity Futures Trading Commission should adopt a regulatory framework for energy perpetual contracts to bring the products to the U.S., the Hyperliquid Policy Center and perpetuals trading platform TradeXYZ said in a letter on Wednesday.
The Hyperliquid Policy Center and TradeXYZ pointed to disruptions in global supply chains in the Middle East earlier this year after the United States and Israel conducted missile strikes on Iran, which triggered supply shocks. That happened over the weekend, so traditional oil futures markets were closed, but platforms like Hyperliquid operate 24/7, so much of the trading happened onchain.
"When another crisis breaks on a Saturday night, American businesses should not have to wait until Sunday evening to manage their risk," HPC said.
Hyperliquid has become popular among crypto derivatives traders and came into the spotlight last week at the White House when President Donald Trump said that CFTC Chair Michael Selig was working to bring the perpetual trading platform Hyperliquid into the U.S. in a "fully compliant and legal fashion."
Perpetuals, or perps, are a type of futures contract that don't have an expiration date and allow people to bet on the price movement of assets without owning them directly. Much of that activity is currently happening on offshore exchanges, so are not regulated in the U.S.
Perps in the US
The CFTC first opened the door for bitcoin perpetual futures contracts in the U.S. when its staff greenlit KalshiEX and Coinbase to list the products. Then in June, the CFTC released a request for comment on crude oil perpetual contracts and 24/7 trading.
Earlier this week, the HPC wrote a letter to the CFTC and the Securities and Exchange Commission asking both agencies to adopt a harmonized framework for perpetual contracts.
In addressing that request for comment, HPC and TradeXYZ said perpetual futures are not meant to replace dated futures, and asked the CFTC to "open a regulated path for it alongside the dated benchmark."
Specifically, they asked for a framework that would be "technology neutral" and based on principles, as well as for the CFTC to clarify what a business day means in terms of timing requirements.
"HPC is focused on ensuring that U.S. market participants can access onchain perpetual contract markets under American oversight, and we will continue engaging with the Commission and its staff to that end," the center said in a post on X.
Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.
© 2026 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Facts Only
The Hyperliquid Policy Center and TradeXYZ urged the CFTC to create a path for U.S. oil perpetuals.
Disruptions in global supply chains in the Middle East occurred after U.S. and Israel missile strikes on Iran, triggering supply shocks.
Traditional oil futures markets were closed over the weekend due to the supply shocks.
Platforms like Hyperliquid operate 24/7, facilitating onchain trading.
The HPC and TradeXYZ asked for a framework that would be “technology neutral” and based on principles.
They requested clarification from the CFTC regarding what constitutes a business day for timing requirements.
Perpetuals are futures contracts without an expiration date.
Much perpetual activity is currently happening on offshore exchanges, outside of U.S. regulation.
The CFTC previously opened the door for bitcoin perpetual futures contracts in the U.S. and requested comment on crude oil perpetual contracts and 24/7 trading in June.
Executive Summary
The Hyperliquid Policy Center and TradeXYZ urged the Commodity Futures Trading Commission (CFTC) to establish a regulatory framework for energy perpetual contracts to bring these products to the U.S. This request stemmed from supply chain disruptions in the Middle East following missile strikes on Iran, which caused supply shocks. The request sought a framework that is technology neutral and principle-based, along with clarification from the CFTC regarding timing requirements for business days.
Perpetual contracts are defined as futures contracts without an expiration date, allowing betting on asset price movements without direct ownership. Much of this trading occurs on offshore exchanges, outside of U.S. regulation. The Hyperliquid Policy Center and TradeXYZ have sought to open a regulated path for these perpetuals alongside dated benchmarks. The center emphasized ensuring U.S. market participants can access onchain perpetual contract markets under American oversight.
Full Take
The narrative centers on bridging the gap between decentralized, continuous onchain trading environments and traditional, regulated financial oversight. The request for a "technology neutral" framework points to a tension between established regulatory structures designed for discrete physical assets and dynamic digital markets. The push for clarity on 'business day' timings reflects an underlying structural friction where real-time digital liquidity operates outside conventional time constraints. This suggests that the challenge is not simply about jurisdiction, but about harmonizing temporal and technological definitions within a new regulatory paradigm.
The pattern involves leveraging external, high-velocity market events (supply shocks) to create urgency for regulatory action that addresses system-wide risk management rather than point-by-point compliance. The implication is that systemic risk stemming from fragmented, unregulated perpetual markets demands an integrated approach across different asset classes and technological infrastructures. The missing piece is the understanding of how principles can be translated into enforceable rules when dealing with decentralized systems, and what responsibility should attach to oversight of non-traditional trading venues operating at speed.
What standards must be prioritized to ensure that regulatory frameworks effectively encompass technology-neutral concepts without stifling innovation? How do established concepts like "business day" need redefinition when applied to continuous, global digital asset flows? What is the secondary cost borne by market participants when regulators attempt to impose historical temporal constraints on future-facing derivative products?