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

Odaily Planet Daily reports that the Hyperliquid Policy Center (HPC) has announced the submission of a policy statement to the Agricultural Advisory Committee meeting of the U.S. Commodity Futures Trading Commission (CFTC), supporting U.S. users' participation in the on-chain derivatives market and calling for regulators to adopt a gradual approach to promote the development of innovative products such as Perpetual Futures.

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

HPC pointed out that today, Perpetual Futures are becoming an important innovative derivative in the digital asset era. The committee's discussions around product choices, risk management gaps, and market modernization are highly relevant to the current regulatory exploration of on-chain derivatives frameworks. In the submitted statement, HPC presented three main points:

1. Market choice is crucial for risk management; users in agriculture and other derivatives markets need more tool options. Past experiences that limited innovative products indicate that closing market choices without adequate assessment may incur costs.

2. It is a reasonable direction for the CFTC to advance Perpetual Futures regulation in phases. HPC stated that the development of new derivatives should be driven by end-user demand rather than solely relying on regulatory assumptions.

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

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