Decentralized Finance Protocol Hyperliquid has submitted formal answers to the recent requests from the US Commodity Futures Trading Commission to comment on continuous futures and 24/7 trade.
In a medium of 22 May afterThe Hyper Foundation said it has submitted two letters to CFTC to shape emerging American regulatory frameworks. The team described how the Hyperliquid (hype) Onchain system already manages trade 24/7, while strong risk protections, user safety and openness are maintained.
According to Hyperliquid, the platform lowers the risk by using pre -financed collateral and automatic liquidations. The system is more open and resilient than traditional markets because trade is continuously taking place and all transactions, margin adjustments and liquidations are visible to the public onchain.
Hyperliquid noted in his comments on eternal derivatives that these crypto-native products are already in use and offer benefits such as improved liquidity, no rollover requirements and simpler smart contract integration. Instead of forcing new products in outdated categories, the team urged the CFTC to use a flexible regulation approach that prioritizes risks and user safety.
The request of the CFTC for comments, which was closed on 21 May, was aimed at understanding how these fast-growing crypto markets work and whether new rules are needed. No new regulations have yet been announced, but the agency can take action in the future.
With almost 70% in the monthly trade volume share between decentralized perpetual platforms, Hyperliquid has emerged as the market leader. In May the platform also reached all-time highlights for USD Coin (USDC) total value locked at $ 3.2 billion, cost $ 5.4 million and open interest at $ 8.9 billion. Hype has risen by 85% over the past 30 days and almost 500% has risen compared to the LOS points of April.
The team said it hopes to continue to work with regulators and sees hyperliquid as a working example of how Defi can improve modern markets.
