Hyperliquid Labs has submitted formal comment letters to the U.S. Commodity Futures Trading Commission (CFTC), advocating for a regulatory framework that supports decentralized finance (DeFi) while fostering innovation in emerging markets such as perpetual derivatives and 24/7 trading.
These comments come in response to the CFTC’s recent Requests for Comment (RFCs), which explore the future of continuous markets and the role of perpetual derivatives in digital finance.
The following post is from Hyperliquid Labs
Hyperliquid Labs is committed to the advancement of defi and its promise in delivering a more open, transparent, and efficient financial system for all. As a contributor to the Hyperliquid blockchain, we believe in defi’s ability not…
— Hyperliquid (@HyperliquidX) May 23, 2025
In their submission, Hyperliquid Labs highlighted how decentralized platforms are already delivering real-world benefits like increased efficiency, transparency, and user protection without relying on centralized intermediaries. They pointed to their own blockchain infrastructure as a prime example of next-generation market design, which operates continuously with pre-funded collateral, automated liquidations, and real-time price updates. This system effectively mitigates risks linked to traditional banking delays, including wire transfers and weekend trading gaps, by ensuring the market never closes.
Moreover, the lab emphasized that every trade, margin adjustment, and liquidation is recorded immutably on the blockchain, creating a verifiable, real-time audit trail accessible to both regulators and market participants. The platform’s operation on a distributed validator network further guarantees resilience and reduces dependency on centralized infrastructure, strengthening market stability.
Addressing the CFTC’s inquiry on perpetual derivatives, Hyperliquid underscored its status as a proven innovation within crypto markets. They explained that onchain implementation of these instruments not only ensures full transparency and enhances user control but also supports the creation of composable applications that seamlessly integrate with other financial tools. Consequently, the firm urged regulators to adopt a principles-based approach focused on risk management, transparency, and consumer protection, rather than imposing rigid classifications that might hinder innovation.
Building on this momentum, Hyperliquid is also set to introduce a revamped fee discount system along with a new account linking feature on May 5, 2025, at 03:00 UTC. These enhancements aim to improve trading incentives and offer greater flexibility to users on the platform.
If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
