Hyperliquid Policy Center Submits Statement to CFTC, Calling for Support of On-Chain Perpetual Futures Innovation

Odaily News - Hyperliquid Policy Center (HPC) has announced that it has submitted a policy statement regarding the meeting of the Commodity Futures Trading Commission's (CFTC) Agricultural Advisory Committee, expressing support for U.S. users' participation in the on-chain derivatives market and calling on regulators to adopt a gradual path to promote the development of innovative products such as perpetual futures.

HPC stated that the U.S. derivatives market originated in agriculture. In the 19th century, grain exchanges in the U.S. Midwest used futures contracts to help farmers and traders discover prices and manage future delivery risks. Since 1922, oversight of the U.S. futures market was under the Department of Agriculture for a long period, until Congress established the CFTC in 1974 and assigned oversight responsibilities to the agriculture committees of both the Senate and the House of Representatives. Modern derivatives regulation should still revolve around actual market users. Agricultural producers and processors have always been important constituents of the CFTC, and market participants' demand for product choices, risk management tools, and market innovation should also serve as an important reference for the evolution of regulatory policy.

HPC noted that perpetual futures are now becoming an important innovative derivative in the digital asset era, and the committee's discussions on product choices, risk management gaps, and market modernization are highly relevant to regulators' current exploration of an on-chain derivatives regulatory framework. In the submitted statement, HPC put forward three main points:

1. Market choice is crucial to risk management. Users in agricultural and other derivatives markets need more tool options. Past experience with restricting innovative products suggests that closing off market choices without adequate assessment may carry costs.

2. A phased approach by the CFTC toward perpetual futures regulation is a reasonable direction. HPC stated that the development of new derivative products should be driven by end-user demand rather than relying solely on regulatory presuppositions.

3. Public blockchains can improve the efficiency of financial infrastructure. HPC believes that blockchain technology can drive the modernization of clearing and settlement systems, enhance collateral liquidity, while continuing to comply with the market integrity and risk protection requirements of the Commodity Exchange Act.