CME Group and ICE urged US regulators to scrutinize Hyperliquid for manipulation and sanctions risks on May 15.
CME and ICE warned that Hyperliquid’s anonymous, round-the-clock perpetual futures trading could distort global commodity benchmarks, particularly in oil markets. The exchanges also flagged risks of insider coordination and sanctions evasion by state-linked participants exploiting the platform’s permissionless structure.
Hyperliquid holds a market capitalisation of approximately $10.3 billion, making $HYPE the 13th-largest crypto asset globally. At its April 2025 peak, the platform accounted for roughly 70% of the on-chain perpetual futures market.
$HYPE falls as Wall Street targets DeFi perp venue
The pressure campaign comes as Hyperliquid has expanded into synthetic markets for stocks and commodities, placing it in direct competition with CME and ICE. Both exchanges operate under strict regulatory oversight that Hyperliquid currently does not face.
The Hyperliquid Policy Center argued the platform provides markets that are “more beneficial and present fewer risks than traditional centralised exchanges” and expects the CFTC to develop a tailored regulatory framework for on-chain derivatives platforms.
Hyperliquid launched the Policy Center in Washington in February 2026, selecting veteran crypto policy lawyer Jake Chervinsky to lead the organisation. The group has held direct meetings with the CFTC aimed at establishing a legal path for US retail participation.
The platform had positioned itself as a beneficiary of rising oil perps activity in early 2026, with open interest in oil-linked perpetual contracts surging as the Iran conflict disrupted global energy markets.
The Hyper Foundation addressed community concerns over validator configuration earlier this year, framing transparency and decentralisation as central to Hyperliquid’s competitive proposition against regulated venues. No formal regulatory action has been announced.
