ME News reports that on August 26 (UTC+8), the Hyperliquid Policy Center (HPC) and trade.xyz submitted a joint comment letter to the U.S. Commodity Futures Trading Commission (CFTC), calling for a clear pathway to bring energy perpetual contracts into the U.S. regulated market. trade.xyz, Hyperliquid’s largest third-party deployment platform for perpetual contracts, has generated over $500 billion in cumulative trading volume since launching markets such as WTI crude oil, Brent crude oil, and Henry Hub natural gas in October 2025. The comment letter cites the disruption of energy exports due to Middle East conflicts in late February this year, noting that during weekend closures of the U.S. crude oil futures market, offshore participants were still able to manage risk through oil perpetual contracts on Hyperliquid. Before traditional benchmark markets reopened, on-chain contracts had already completed approximately two-thirds of the total price movement from Friday’s close to Sunday’s open. HPC and trade.xyz argue that perpetual contracts, which have no expiration date, eliminate the need for repeated rollovers and allow trading interest to concentrate on a single order book. Traditional WTI futures contracts represent 1,000 barrels of crude oil each, with a notional value of approximately $70,000 at recent prices; in contrast, trade.xyz’s原油 markets have a median trade size of only around $1,300 during non-traditional hours, better matching smaller real-world risk exposures. Their research shows that in nearly 75% of sampled weekend closures, the price of oil perpetual contracts more closely approximated Sunday’s reopening price than the traditional benchmark’s Friday close. Furthermore, since the launch of these contracts, the price quality of CME WTI reopenings has not significantly deteriorated. To date, 97.9% of trade liquidations on trade.xyz’s markets have been handled by standard order book liquidation mechanisms. The comment letter asserts that the U.S. does not need new legislation to open energy perpetual contracts and recommends that the CFTC adopt a technology-neutral, principles-based regulatory framework. This framework should affirm that exchanges and clearing houses may operate around the clock while meeting core principles, clarify time-sensitive requirements such as “business day,” permit stablecoins and tokenized traditional assets as margin, and recognize on-chain infrastructure for trading, margin management, clearing, settlement, and recordkeeping. (Source: BlockBeats)
HPC and trade.xyz urge the CFTC to permit energy perpetual contracts on U.S. regulated markets.
KuCoinFlashShare
Summary
On August 26 (UTC+8), the Hyperliquid Policy Center (HPC) and trade.xyz sent a letter to the CFTC urging support for energy perpetual futures in U.S. markets. The letter cited Hyperliquid’s perpetual futures as a tool for managing risk during recent Middle East tensions and closures in the U.S. crude futures market. Trade.xyz’s energy markets, including WTI and natural gas, have seen over $500 billion in trading volume since October 2025. The groups emphasized the efficiency of perpetual futures for price discovery and managing smaller exposures. Traders are also monitoring altcoins amid shifting market dynamics.
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.