Odaily Planet Daily reports that the Hyperliquid Policy Center (HPC) has submitted a policy statement regarding the U.S. Commodity Futures Trading Commission (CFTC) Agricultural Advisory Committee meeting, supporting U.S. users' participation in on-chain derivatives markets and urging regulators to adopt a progressive approach to foster innovation in products such as perpetual futures.
HPC notes that the U.S. derivatives market originated in agriculture. In the 19th century, grain exchanges in the American Midwest helped farmers and traders discover prices and manage risks associated with future deliveries through futures contracts. From 1922 onward, U.S. futures market regulation was long under the jurisdiction of the Department of Agriculture, until 1974, when Congress established the CFTC and assigned oversight responsibility to the Agricultural Committees of the Senate and House of Representatives. Modern derivatives regulation should still be centered on the actual users of the market. Agricultural producers and processors have consistently been key constituents of the CFTC, and the needs of market participants for product selection, risk management tools, and market innovation should remain important considerations in the evolution of regulatory policy.
HPC noted that perpetual futures have become a significant innovative derivative in the digital asset era, and the committee’s discussions on product selection, risk management gaps, and market modernization are highly relevant to current regulatory efforts to explore a regulatory framework for on-chain derivatives. In its submitted statement, HPC presented three key points:
1. Market selection is critical for risk management; users in agricultural and other derivatives markets require more tool options. Past experiences limiting innovative products have shown that closing market choices without adequate evaluation can incur costs.
2. The CFTC’s phased approach to regulating perpetual futures is a reasonable direction. HPC stated that the development of new derivatives should be driven by end-user demand, not solely by regulatory preconceptions.
3. Public blockchains can enhance the efficiency of financial infrastructure. HPC believes that blockchain technology can modernize clearing and settlement systems, improve collateral liquidity, while continuing to comply with the Commodity Exchange Act’s requirements for market integrity and risk protection.