Hyperliquid Labs, a prominent player in the decentralized finance (DeFi) space, recently submitted two formal comment letters to the U.S. Commodity Futures Trading Commission (CFTC) on May 23. The letters were in response to the agency’s call for public input on the future of perpetual swaps and 24/7 derivatives trading.
The CFTC had launched two regulatory initiatives in April, titled “Request for Comment on the Use of Perpetual Swaps in U.S. Markets” and “Request for Comment on Round-the-Clock Derivatives Trading.” These initiatives aimed to explore regulatory approaches for continuous trading environments and new types of derivatives products.
Hyperliquid Labs praised the CFTC’s engagement on these issues, calling them “fundamental to the evolution of global markets.” The organization highlighted the role that decentralized finance can play in shaping the future of financial markets, emphasizing its potential to improve transparency, efficiency, and user control in financial systems.
In its submissions, Hyperliquid Labs urged U.S. regulators to lead in financial innovation by establishing clear and supportive rules for the sector. The organization emphasized how its decentralized model offers a real-world example of DeFi principles in action, as it is a contributor to the Hyperliquid blockchain protocol, which supports decentralized perpetual markets.
Several other blockchain projects and financial firms, including Coinbase, Uniswap Foundation, and dYdX Trading Inc., also submitted responses to the CFTC by the May 21 deadline. These submissions addressed issues such as continuous risk monitoring, decentralized governance, and regulatory parity between centralized and decentralized platforms.
The CFTC had requested public input on these initiatives in April, following the establishment of the Office of Technology Innovation (OTI) in March 2024 to engage with blockchain developers and digital asset firms. The agency has not yet indicated when it will issue findings or next steps related to the perpetuals and 24/7 trading consultations, but the volume of submissions may inform future guidance or rulemaking in late 2025 or early 2026.
Overall, Hyperliquid Labs’ proactive submission to the CFTC demonstrates its commitment to engaging with regulators and shaping the future of decentralized finance. The organization’s emphasis on transparency, efficiency, and user protection aligns with the broader goals of the DeFi industry, as it continues to innovate and evolve the financial sector.