Two of the world's largest exchange operators are pushing U.S. regulators to rein in the fast-growing decentralized derivatives platform Hyperliquid, even as its native token price gained over 20 percent on separate integration news. Reports on May 15 indicated that CME Group and the New York Stock Exchange’s parent, Intercontinental Exchange (ICE), have raised concerns with lawmakers over the crypto venue.
The Hyperliquid Policy Center, an advocacy group for the platform, pushed back against the concerns, stating they are “unfounded.” The group argued that Hyperliquid “offers enhanced market transparency, publishing a complete onchain record of every transaction in real-time,” which it claims makes manipulation more difficult to conceal than on traditional systems.
The legacy exchanges are reportedly pressing for Hyperliquid to register with the Commodity Futures Trading Commission (CFTC), which would bring it under U.S. derivatives oversight. Their concerns center on the platform’s potential for market manipulation, particularly in global oil markets, and exposure to sanctioned participants due to its permissionless nature. Unlike traditional exchanges that are neutral market intermediaries, Hyperliquid uses an internal vault, HLP, that acts as the counterparty to traders, creating a different risk structure.
This conflict highlights a growing battle for derivatives liquidity between incumbent financial giants and emerging DeFi platforms. The push for regulation comes as Hyperliquid gains institutional traction, with 21Shares and Bitwise recently launching exchange-traded funds tied to the platform. Hyperliquid founder Jeff Yan stated he has been meeting with policymakers in Washington to discuss a regulated path for Americans to access on-chain markets, noting bipartisan support for thoughtful crypto regulation.
The regulatory debate unfolded as Hyperliquid’s native HYPE token traded near $45.75, up more than 20 percent after reports that Coinbase would become its official USDC treasury deployer. The token’s price is testing resistance near $47.34, according to technical analysis of its daily chart. The move puts a spotlight on the platform’s growing ecosystem, which includes rising revenue, token buybacks, and the development of prediction markets under its HIP-4 proposal.
This article is for informational purposes only and does not constitute investment advice.
