Hyperliquid Fights Back Against CME, ICE’s Regulatory Pressure Push

by

Hyperliquid Policy Center Responds To ICE, CME’s Regulatory Pressure Push

Hyperliquid, a decentralized exchange, is responding to new regulatory scrutiny, as detailed in a Bloomberg report on Friday. Their policy team in Washington, D.C. has been actively working on the issue.

CME Group and Intercontinental Exchange (ICE) are asking the government to regulate a certain platform, telling the Commodity Futures Trading Commission (CFTC) and US lawmakers that it currently lacks sufficient oversight. They’re concerned this could lead to problems like unfair market practices and attempts to bypass sanctions.

CME And ICE Urge Hyperliquid CFTC Registration

Exchanges like CME and ICE are concerned about how Hyperliquid operates and where its trading happens. They worry that increasing trade volumes on the platform, especially in crypto and commodities, could disrupt the process of setting fair prices in important markets, such as the oil industry.

Some believe that when trading is done anonymously, people with secret information – or those connected to illegal or government-backed schemes – can manipulate prices, impacting markets everywhere.

So, I’m reading that CME and ICE – the big players in trading – want Hyperliquid to officially register with the CFTC, according to Bloomberg. Basically, that means Hyperliquid would have to start verifying who their users are and keep a closer eye on trading activity to make sure everything’s on the up and up. It’s standard procedure for platforms like that, but it’s a key point of contention right now.

These new requirements seem to conflict with how Hyperliquid currently works, as it’s built around allowing users to trade anonymously.

Hyperliquid Policy Center, headed by CEO Jake Chervisnky, quickly disputed the criticisms. The new organization stated on X (formerly Twitter) that the claims were without merit.

The ‘Anti-Manipulation Shield’

The HPC explained that Hyperliquid is more transparent than typical trading platforms because it publicly records every trade on the blockchain as it happens.

The policy center believes this level of transparency discourages illegal activities like insider trading and market manipulation. It also helps regulators and law enforcement more easily monitor the market, identify potential problems, and conduct thorough investigations.

The policy center highlighted that Hyperliquid offers round-the-clock trading, which they see as a benefit, not a drawback. Unlike traditional exchanges with set hours, Hyperliquid allows prices to adjust constantly, even when other markets are closed. This creates smoother, more consistent pricing and reduces sudden jumps or breaks in the market.

The Hyperliquid Policy Center agrees with Bloomberg’s assessment that current U.S. laws aren’t designed for financial derivatives traded on public blockchains like Hyperliquid. They are committed to collaborating with Washington policymakers to ensure these new, on-chain markets are appropriately regulated.

Some reports, including one from The Defiant, suggest this lobbying effort could benefit CME Group financially. CME is actively working to expand its own round-the-clock cryptocurrency trading services, with Bitcoin Volatility Futures starting on June 1st and Nasdaq CME Crypto Index Futures – covering Bitcoin, Ethereum, XRP, and other cryptocurrencies – launching on June 8th.

As of today, Hyperliquid’s token, HYPE, is worth $44.60. It has increased by 1.6% in the last 24 hours and by nearly 4% over the past week.

Featured image created with OpenArt, chart from TradingView.com

Read More

2026-05-15 21:27