Major exchanges flag Hyperliquid’s decentralized perpetual futures as potential tools for market abuse and sanctions evasion.
CME Group and ICE have alerted U.S. regulators, including the CFTC and Capitol Hill officials, about risks tied to Hyperliquid’s decentralized perpetual futures platform. The exchanges warn the platform could facilitate market manipulation and sanctions evasion due to its unregulated structure.
The concerns follow growing scrutiny of decentralized finance (DeFi) platforms, which operate outside traditional oversight. Hyperliquid’s perpetual futures, a key product, lack the safeguards present in regulated markets, raising alarms among established exchanges.
No immediate market reaction was reported, but the push could escalate regulatory pressure on DeFi platforms amid broader crackdowns on crypto-related risks.