CME, ICE Urge U.S. Regulators to Bring Hyperliquid Under Federal Oversight

CME Group and Intercontinental Exchange (ICE), owner of the New York Stock Exchange, are pressing the Commodity Futures Trading Commission (CFTC) and U.S. lawmakers to subject crypto derivatives venue Hyperliquid to federal supervision, Bloomberg reported Friday. The exchanges say Hyperliquid's largely offshore, lightly regulated trading setup could be susceptible to market manipulation and sanctions evasion. They also warn that the platform's rising volumes in crypto and commodity-linked markets could start to skew price discovery in key areas such as oil, where global benchmarks are set, arguing that anonymous trading may enable insiders or state-linked participants to exert influence. CME and ICE want Hyperliquid to register with the CFTC, a move that would require customer identification programs and trade-surveillance controls. Hyperliquid's token, HYPE, fell about 6% on the news, sliding from above $45 to below $43. The push also comes as CME moves to broaden its own around-the-clock crypto lineup. Bitcoin Volatility Futures are slated to start trading June 1, followed by Nasdaq CME Crypto Index Futures on June 8, covering BTC, ETH, XRP, and other assets. Hyperliquid Pushes Back The Hyperliquid Policy Center, an advocacy group created in February by a Hyperliquid-affiliated foundation, rejected the characterization in a post on X on Friday. The group said traditional exchanges that match buyers and sellers and collect fees operate differently from Hyperliquid's model, and argued that treating them as the same misstates the platform's structure and risk profile. The Policy Center said it has already held meetings with the CFTC aimed at mapping a legal path for U.S. participation in Hyperliquid's markets. It contends its markets offer better outcomes and fewer risks than traditional centralized exchanges, and expects the CFTC to craft a tailored framework for onchain derivatives platforms. Regulatory Vulnerability Hyperliquid's bridge, the single custody point for all user funds, is protected by a 3-of-4 multisig. At its April 2025 peak, Hyperliquid represented roughly 70% of the onchain perpetual futures market. That scale, along with a relatively centralized custody setup and IP-based georestrictions, could increase regulatory exposure.