Two firms urge U.S. regulators to create rules for pre-IPO perpetuals, allowing retail investor access without share ownership.
Hyperliquid Policy Center and trade[XYZ] submitted a joint proposal to the SEC outlining a regulatory framework for pre-IPO perpetual contracts, dubbed IPOPs. The products would offer price exposure to pre-listing companies without conferring shares, voting rights, or IPO allocations.
The proposal seeks clarity on whether equity-linked perpetuals qualify as security futures or security-based swaps. It also requests rules on disclosures, listing standards, leverage limits, position controls, and market manipulation safeguards.
The firms argue IPOPs could enhance price discovery while expanding access to retail investors, though regulatory approval remains pending.