The Hyperliquid Policy Center, the lobbying organization for the cryptocurrency derivatives market platform Hyperliquid, responded to a Bloomberg article that addressed concerns from traditional trading platforms regarding Hyperliquid’s perpetual contract market.
The organization argued that concerns about market manipulation and sanctions circumvention in traditional stock exchanges were “unfounded.”
The Hyperliquid Policy Center stated in its announcement that the platform offers greater transparency compared to traditional financial markets. The organization said that all transactions are recorded in real-time and publicly on the blockchain, which naturally deters insider trading and price manipulation. The statement also noted that regulators and law enforcement agencies can track transactions more easily, and detection and investigation processes are accelerated.
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The organization also argued that Hyperliquid’s 24/7 uninterrupted trading mechanism increases market efficiency. The statement noted that asset prices continue to move even when traditional exchanges are closed, and that the continuously open market structure strengthens the price discovery mechanism.
The Hyperliquid Policy Center also stated that it agrees with the Bloomberg report’s assessment that “US laws have not yet established a clear regulatory framework for public blockchain-based derivatives markets.” The organization announced that it will continue to work with policymakers in Washington to integrate on-chain markets into the existing financial regulatory system.
Bloomberg reported that traditional derivatives market giants CME Group and Intercontinental Exchange were pressuring US regulators to oversee Hyperliquid due to risks of market manipulation and sanctions violations.
*This is not investment advice.
