The Hyperliquid Policy Center is pressing U.S. regulators to establish a coordinated framework for equity-linked perpetual contracts, arguing that clearer rules could bring emerging onchain markets into the regulated financial system.
The policy group recently joined trade, a deployer of perpetual markets on Hyperliquid, in a submission to the Securities and Exchange Commission focused on pre-IPO perpetuals, or IPOPs. The proposal comes as regulators examine how traditional securities rules should apply to blockchain-based derivatives.
Regulators Face New Product Questions
The central issue is how equity-referencing perpetuals should be classified. The groups argue that the SEC and Commodity Futures Trading Commission should determine whether these instruments qualify as security futures or security-based swaps.
That classification would affect registration, trading venues, clearing, margin requirements and other compliance obligations. The groups also called for rules covering disclosure, listing standards, leverage, position limits and market manipulation.
The proposal distinguishes IPOPs from traditional stock ownership. Holders would receive price exposure but would not own shares or receive voting, allocation or issuer rights.
The groups argue that this structure could create a public price-discovery mechanism before companies enter public markets. That could give issuers and underwriters another source of information when setting IPO price ranges.
Onchain Markets Seek U.S. Regulatory Path
The push reflects a broader campaign by the Hyperliquid Policy Center to establish a domestic regulatory pathway for onchain derivatives. The organization describes itself as an independent research and advocacy group focused on perpetual derivatives and financial infrastructure.
The group has also engaged with the CFTC over rules for decentralized and non-custodial trading infrastructure. In separate policy work, it has argued that regulators should adapt rules designed for traditional intermediaries to account for blockchain-based markets.
The regulatory question is becoming more significant as Hyperliquid expands beyond crypto assets. Its permissionless market framework supports perpetual contracts referencing equities, commodities, foreign exchange and other assets.
For regulators, the challenge is balancing innovation with investor protection and market integrity. A coordinated SEC-CFTC approach could provide greater certainty, but the agencies have yet to endorse the proposed framework.
The proposals therefore mark an early step in a larger debate over whether equity derivatives can move onto public blockchains while remaining within the U.S. regulatory perimeter.
