Major financial exchanges CME Group and ICE have called on U.S. regulators and lawmakers to investigate the decentralized trading platform Hyperliquid over concerns of market manipulation and potential sanctions violations. The request, reported on May 15, targets Hyperliquid’s anonymous, 24/7 perpetual futures trading, which the exchanges argue could disrupt global commodity benchmarks, especially in oil markets. They also highlighted risks of insider collusion and sanction evasion by state-linked actors exploiting the platform’s permissionless structure.
Hyperliquid, with a market cap of around $10.3 billion, ranks as the 13th-largest cryptocurrency by value. At its peak in April 2025, the platform captured roughly 70% of the on-chain perpetual futures market. The pressure from CME and ICE comes as Hyperliquid expands into synthetic stock and commodity markets, directly challenging the regulated environments of these traditional exchanges.
In response, the Hyperliquid Policy Center, led by veteran crypto policy lawyer Jake Chervinsky, has argued that the platform offers markets that are more beneficial and less risky than conventional exchanges. The center has engaged with the Commodity Futures Trading Commission to push for a tailored regulatory framework for on-chain derivatives platforms. Established in Washington in February 2026, the Policy Center has held direct talks with the CFTC to pave a legal path for U.S. retail participation.
Earlier in 2026, Hyperliquid had positioned itself to benefit from rising activity in oil perpetual contracts amid geopolitical tensions. The platform’s open interest in oil-linked perpetuals surged as the Iran conflict impacted global energy markets. The Hyper Foundation also addressed concerns about validator configuration, emphasizing transparency and decentralization as key advantages over regulated venues. As of now, no formal regulatory action has been announced against Hyperliquid, but the HYPE token experienced a roughly 6% decline, falling from above $45 to below $43 following the Bloomberg report.