BULLISH 📈 : CFTC plans US-based crypto perps, boosting Hyperliquid prospects

The Commodity Futures Trading Commission (CFTC), led by Mike Selig, is moving towards introducing a regulatory framework for crypto perpetual futures in the US, potentially reshaping the digital asset derivatives market. This development could benefit platforms like Hyperliquid (HYPE) in the perpetuals segment.

CFTC’s Regulatory Efforts

Mike Selig announced plans at the Milken Institute’s Future of Finance conference to establish rules for crypto perpetual futures contracts.
These products, allowing indefinite leveraged exposure, have primarily operated offshore.
The CFTC aims to recapture liquidity that has moved overseas due to previous regulatory conditions.
The initiative is part of "Project Crypto," an interagency effort to update financial regulations for new technologies.
Regulators are also considering how to incorporate decentralized finance (DeFi) protocols into existing rules.

Support from Hyperliquid

Hyperliquid, a decentralized exchange, supports the regulatory push and is actively engaging with lawmakers through its Policy Center.
The Hyperliquid Policy Center was established with a grant of 1 million HYPE tokens to shape clear rules for perpetual derivatives in decentralized markets.
The Center's leader, Jake Chervinsky, advocates for perpetual contracts due to their simplicity and direct exposure to crypto assets.

Monthly activity on perpetual platforms has surged, reaching $829 billion, and may increase if US regulators approve domestic trading under the CFTC's guidance.

Crypto

Currently, Hyperliquid's (HYPE) token trades at $31.77, down 2.4% over 24 hours but has seen a 74% increase year-to-date according to CoinGecko data.