Hyperliquid Policy Center Calls for Joint SEC-CFTC Oversight of Perpetual Futures

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Hyperliquid Policy Center Calls for Joint SEC-CFTC Oversight of Perpetual Futures

The Hyperliquid Policy Center has formally urged the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to develop a joint regulatory framework for perpetual futures, according to a paper released today and reported by The Block. The proposal centers on classifying these derivative contracts based on their economic structure rather than the underlying asset, such as Bitcoin, crude oil, or equities.

Why This Matters for the Crypto Derivatives Market

Perpetual futures—often called “perps”—are a cornerstone of digital asset trading, allowing investors to speculate on price movements without an expiry date. The market has grown rapidly, with daily volumes frequently exceeding billions of dollars on global exchanges. However, regulatory clarity in the United States remains fragmented, with the SEC and CFTC each claiming jurisdiction over different aspects of digital assets, creating uncertainty for exchanges and traders.

The Hyperliquid Policy Center’s paper argues that the current asset-based classification is outdated. For instance, a perpetual future tracking Bitcoin might fall under CFTC oversight if deemed a commodity, while one tracking a tokenized stock could be considered a security under SEC rules. This patchwork approach, the paper contends, creates inefficiencies and pushes trading activity to offshore platforms that operate in clearer legal environments.