According to Bloomberg, the Chicago Mercantile Exchange Group and Intercontinental Exchange, the parent company of the New York Stock Exchange, are urging U.S. regulators and lawmakers to strengthen oversight of the decentralized derivatives exchange Hyperliquid.
The operators of these two exchanges have raised concerns among CFTC officials and members of Congress with their promotion of Hyperliquid’s rapidly growing perpetual futures market. Their concerns primarily focus on market manipulation, sanctions evasion, and the potential impact of decentralized trading activity on traditional commodity price discovery mechanisms.
Hyperliquid has become one of the largest on-chain derivatives trading platforms, with strong trading volumes in perpetual futures and synthetic exposure to assets such as commodities and stocks. The platform operates 24/7, allowing users to trade leveraged products outside traditional exchange trading hours.
Reports indicate that the Chicago Mercantile Exchange (CME) and the Intercontinental Exchange (ICE) believe Hyperliquid’s decentralized structure and highly anonymous trading environment could enable bad actors to manipulate prices or evade financial regulations. According to the reports, both companies are urging stronger regulation, including potentially requiring platforms offering derivatives trading to U.S. users to register with the Commodity Futures Trading Commission (CFTC).
The Chicago Mercantile Exchange and Intercontinental Exchange raise concerns about market manipulation.
The Chicago Mercantile Exchange (CME) and the Intercontinental Exchange (ICE) operate the world's largest regulated derivatives and commodities markets. They are reportedly concerned that Hyperliquid's trading activity could affect reference prices in areas such as oil, as traditional markets rely on regulated trading venues and benchmark pricing mechanisms.
Hyperliquid enters the synthetic market through HIP-3, bringing its platform closer to markets long dominated by traditional exchanges. These products enable traders to gain exposure to assets such as stocks and commodities through on-chain contracts.
Traditional exchange operators believe that anonymous or lightly regulated trading venues may pose risks if large participants coordinate trades, exploit insider information, or transact with entities linked to sanctioned jurisdictions.
The Chicago Mercantile Exchange (CME) is also expanding its cryptocurrency derivatives business, raising concerns. The exchange is preparing to launch Bitcoin volatility futures and the Nasdaq CME Crypto Index futures on June 1 and June 8, respectively, following regulatory approval. These products are targeted at institutional traders seeking regulated cryptocurrency investments.
Hyperliquid defends the on-chain market model
The platform responded to the report, dismissing the concerns as unfounded. It argued that public blockchains provide transparent transaction records, making covert manipulation more difficult than in private market structures.
This decentralized exchange states that its model provides 24/7 market access, narrower price spreads, and transparent visibility into market activity. It also notes that the on-chain system can create a more open environment for regulators, as trade and position data can be audited on public infrastructure.
HyperliquidHyperliquid has experienced rapid growth in the on-chain derivatives space. As of May 2026, it reportedly controls 53% of trading fees in the on-chain derivatives market, with open interest reaching $2.45 billion. The platform’s expansion has positioned it as a direct competitor to centralized crypto exchanges and traditional derivatives trading venues.
Meanwhile, cryptocurrency investigator ZachXBT pointed out financial connections between ICE and Polymarket, questioning why ICE, the owner of the New York Stock Exchange, expressed concern over Hyperliquid but not over the prediction market platform Polymarket.
He noted in the post that ICE completed a $600 million investment in Polymarket in March 2026, following a previous $1 billion investment, bringing its total stake to approximately $1.64 billion. This comment further intensified the debate over whether traditional exchanges are treating on-chain competitors fairly.
According to reports, the advocacy organization Hyperliquid Policy Center, associated with the blockchain ecosystem, has met with the U.S. Commodity Futures Trading Commission (CFTC) to discuss legitimate pathways for U.S. participation in the blockchain market. The organization is seeking a framework that permits regulated market access while recognizing the differences between public blockchain markets and centralized exchanges.
After the regulatory report was released, the hype-driven stock price dropped.
The native token of Hyperliquid, HYPE, declined in price following the Bloomberg report. The price dropped from above $45 to below $43, then rebounded to around $44, but remained elevated over the 24-hour period.
Previously, Hyperliquid's price saw a strong rally earlier this week. Its popularity further increased after Coinbase and Circle announced a partnership with Hyperliquid. Coinbase stated that it will become the platform’s official USDC funding partner, adding a major U.S. cryptocurrency company to its ecosystem.
Market reactions indicate that regulatory issues remain central to Hyperliquid’s valuation and growth prospects. Obtaining formal registration with the U.S. Commodity Futures Trading Commission (CFTC) could expand access for institutional investors, but stricter regulatory requirements may also alter how the platform serves its users.
This debate comes as U.S. lawmakers advance broader legislation on the structure of the cryptocurrency market. The CLARITY Act recently moved to the Senate Banking Committee, aiming to clarify how digital asset securities and commodities should be regulated.