Hyperliquid Groups File for CFTC-Approved Energy Perpetuals

August 26, 2025 — Hyperliquid Policy Center and trade[XYZ] have formally asked the Commodity Futures Trading Commission to permit regulated perpetual contracts tied to WTI crude, Brent crude, and Henry Hub natural gas, citing more than $500 billion in cumulative trading volume across their markets. The joint filing, submitted Aug. 26 in response to a CFTC review, argues existing regulations can accommodate continuous energy trading without new legislation.

Immediate Details & Direct Quotes

The proposal seeks a legal pathway for perpetual contracts referencing West Texas Intermediate crude, Brent crude, and Henry Hub natural gas. trade[XYZ], the first major third-party market deployer on Hyperliquid, has operated these products since October 2025.

Unlike dated futures, perpetual contracts never expire. Traders make recurring funding payments designed to keep contract prices aligned with reference assets, allowing positions to remain open without rolling into new delivery months. The filing reports trade[XYZ]’s markets have generated over $500 billion in cumulative volume across multiple asset classes, citing Bloomberg data.

The groups claim continuous trading could help U.S. firms hedge energy exposure during weekends when traditional futures venues close. The filing proposes stablecoin margin, leverage limits determined by asset class, and regulated onchain market infrastructure. It also requests plain-language disclosures explaining funding payments and liquidation processes.

Market Context & Reaction

The filing highlights a specific geopolitical event to illustrate the need for continuous markets. After Middle East conflict disrupted energy exports on Feb. 28, airlines, refiners, and fund managers could not adjust positions through regulated U.S. futures until Sunday evening. Oil-linked perpetuals on Hyperliquid kept operating through the weekend.

According to the groups, roughly two-thirds of the oil price movement between Friday’s close and Sunday’s benchmark reopening had already occurred in the onchain market. Brent reached nearly $120 per barrel by March 9, while jet fuel prices doubled within weeks, per news reports cited in the filing.

A Hyperliquid Policy Center study found that across nearly 75% of examined weekend closures, crude perpetual prices finished closer to Sunday’s opening than the previous Friday’s close. The study also found no statistically significant decline in CME WTI reopening price quality after trade[XYZ] launched its crude contract.

Contract size differences are notable: one benchmark WTI futures contract covers 1,000 barrels representing roughly $70,000 in notional exposure, while the median off-hours crude trade on trade[XYZ] was about $1,300.

Background & Historical Context

The CFTC requested public comments in June on extending standard energy futures to continuous trading and listing perpetuals tied to physical or storable commodities. The review covers reference-price reliability, manipulation risks, surveillance, position limits, margin, clearing, and customer safeguards. After adding questions and extension requests, the agency set the Aug. 26 deadline.

CFTC Chair Michael Selig said the agency needed a “clear, data-driven record” as regulated entities considered longer trading hours and new contract designs. The commission has not approved energy perpetuals, and the consultation does not guarantee authorization.

A precedent exists for digital assets. The CFTC approved Kalshi’s Bitcoin perpetual as the first federally regulated contract of its kind, treating the non-expiring product as a futures contract. However, energy products require separate consideration because crude and natural gas have physical markets and delivery systems that differ from Bitcoin.

In May, ICE licensed its Brent and WTI prices for OKX perpetual contracts in selected markets outside the United States, showing established operators are also exploring round-the-clock energy products.

What This Means

The filing requests a technology-neutral framework from the CFTC rather than mandating specific market structures. Exchanges and clearinghouses would need to demonstrate compliance with existing core principles before operating continuously.

Under trade[XYZ]’s model, positions are pre-funded, and margin recalculates with each transaction rather than waiting for scheduled settlement. Standard order-book liquidations handled 97.9% of all notional volume liquidated across trade[XYZ] markets, with predefined backstop processes covering the remainder.

The groups also want the CFTC to clarify stablecoin eligibility as margin for cleared derivatives. Current policy permits certain digital assets through the agency’s crypto collateral pilot, but the proposal does not cover uncleared swaps.

CFTC requirements written around conventional business hours, including “business day” deadlines, would need clarification for continuous operations. The filing asks regulators to explain how these terms apply when exchanges, clearing systems, and collateral networks run through nights, weekends, and holidays.

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