The group is pressing US regulators to build a shared framework for perpetual futures tied to stocks.
The Hyperliquid Policy Center has urged the SEC and CFTC to work together on a regulatory framework for equity perpetual futures. Reports from crypto.news and CoinGape described the effort as a push for harmonized rules covering perpetuals tied to stock prices.
Equity perpetuals are derivative contracts that track the price of individual stocks without an expiration date. They resemble the perpetual futures already common in crypto trading, but apply the same structure to traditional equities. That overlap creates a regulatory gray zone, since stock-linked products typically fall under SEC oversight, while derivatives markets are traditionally the CFTC's domain.
Hyperliquid, the platform behind the policy center, operates a decentralized exchange known for its perpetual futures markets. The center appears to function as an advocacy arm focused on shaping US policy toward crypto-native derivatives products. Its outreach to both agencies suggests an effort to avoid a repeat of past disputes where crypto firms faced conflicting guidance from different regulators.
The SEC and CFTC have historically split authority over financial products in ways that sometimes leave gaps or overlaps. Securities fall under the SEC, commodities and most derivatives fall under the CFTC. Equity perpetuals blend features of both categories, since they derive value from a security but trade like a futures contract. That structure has made them a persistent gray area for regulators and market participants alike.
The timing of the push matters given the broader debate in Washington over market structure legislation for digital assets. Lawmakers and regulators have spent recent years discussing how to divide oversight of crypto markets between the SEC and CFTC. A formal framework for equity perpetuals could set a precedent for how blended products are treated going forward, according to the reports.
Neither outlet detailed a specific proposal text or timeline from the SEC or CFTC in response. It remains unclear whether the agencies have formally engaged with the Hyperliquid Policy Center's request. The development nonetheless signals growing interest from crypto-native platforms in shaping the rules that will govern tokenized or derivative exposure to traditional equities.
Equity perpetuals have drawn attention as a potential bridge between crypto trading infrastructure and traditional stock markets. Offering leveraged, round-the-clock exposure to equities without traditional brokerage accounts could appeal to a wide range of traders. But that same feature raises investor protection questions that regulators are likely to scrutinize closely.
Market Impact
A clearer regulatory framework for equity perpetuals could open the door for platforms like Hyperliquid to expand product offerings tied to stocks. That would extend the perpetual futures model, already popular in crypto trading, into traditional equity markets. Clarity from the SEC and CFTC could also reduce compliance uncertainty for other exchanges considering similar products.
Without coordinated guidance, platforms offering equity-linked perpetuals face legal risk from operating in a jurisdictional gray zone. Regulatory ambiguity has previously slowed product launches in the crypto derivatives space. Any eventual joint framework would likely influence how other exchanges structure stock-tied derivative products going forward.
The push from the Hyperliquid Policy Center highlights ongoing friction between securities and derivatives regulation in the crypto sector. Whether the SEC and CFTC respond with a joint framework remains to be seen.
Frequently Asked Questions
What are equity perpetuals?
Equity perpetuals are derivative contracts that track a stock's price without a set expiration date, similar to crypto perpetual futures.
Why is the Hyperliquid Policy Center involved in this issue?
The center is an advocacy group linked to the Hyperliquid platform, which operates decentralized perpetual futures markets and has an interest in clearer US regulation.
Why do both the SEC and CFTC have a role here?
Equity perpetuals combine features of securities, typically overseen by the SEC, and derivatives, typically overseen by the CFTC, creating overlapping jurisdiction.
Have the SEC or CFTC responded to the request?
The reports covering this development did not indicate a formal response from either agency.
