Hyperliquid Urges CFTC to Permit Energy Perpetual Futures

The Hyperliquid Policy Center, or HPC, the policy arm of global decentralized exchange Hyperliquid, has asked US regulators to allow trading in energy perpetual futures.

HPC said Aug. 26 that it jointly submitted a comment letter with perpetual futures infrastructure firm TradeXYZ to the Commodity Futures Trading Commission, calling for a regulatory framework for energy perpetual futures.

The group said that when the Iran war broke out in February and disrupted energy supply chains, the traditional crude oil futures market was closed over the weekend, making it harder for US companies and investors to respond immediately. By contrast, investors outside the US traded crude oil perpetual futures on Hyperliquid, with about two-thirds of weekend price moves reflected first in on-chain markets.

According to HPC research, in about 75% of the weekend market closures it studied, weekend prices in crude oil perpetual futures were closer to the Sunday reopening price than to the regular market's Friday close.

HPC cited real-time margin management and liquidation as key advantages of on-chain infrastructure. Positions are fully funded in advance, and margin is recalculated each time a trade occurs.

The group said energy perpetual futures still carry risks, including leverage, thin weekend liquidity and cascading liquidations. It proposed leverage caps by commodity and additional safeguards to protect market integrity.

The CFTC in May allowed US exchanges to list perpetual futures, but that decision was limited to Bitcoin and similar assets. The agency has said other asset classes, including energy, will be reviewed separately.

HPC argued that energy perpetual futures could be permitted under the existing Commodity Exchange Act framework without new legislation. The proposal also calls for recognizing stablecoins and real-world assets, or RWAs, that can trade over the weekend as eligible derivatives margin.