CME and ICE Urge U.S. Regulators to Review Hyperliquid Over Market Risks

CME Group and Intercontinental Exchange (ICE) have reportedly asked U.S. regulators to take a closer look at Hyperliquid, a fast-growing decentralized derivatives platform, over concerns linked to market manipulation and sanctions risks.

According to reports, executives from both exchanges shared concerns with the Commodity Futures Trading Commission (CFTC) and lawmakers in Washington. They argued that Hyperliquid’s anonymous and nonstop perpetual futures trading model could create risks for traditional financial markets, especially global oil benchmarks.

The exchanges believe the platform’s structure may allow bad actors to influence prices or avoid financial restrictions due to limited oversight and round-the-clock trading access.

Hyperliquid Growth Draws Attention From Traditional Exchanges

Hyperliquid has rapidly expanded in the crypto market, gaining popularity through perpetual futures trading and synthetic markets tied to stocks and commodities.

Competition Between Traditional and Decentralized Markets

The platform recently strengthened its position through partnerships involving Coinbase and Circle. However, its growing influence is also increasing pressure from traditional exchanges, which operate under stricter regulatory rules and see decentralized finance as a rising competitor.