Bloomberg reported that CME Group and the New York Stock Exchange are urging US regulators to increase scrutiny of Hyperliquid, a decentralized derivatives platform that has grown quickly in on-chain perpetuals. After the report, HYPE dropped nearly 10% in short-term trading as the market reacted to the prospect of tighter oversight.
According to the report, the concerns presented to regulators including the Commodity Futures Trading Commission center on three issues: market manipulation, sanctions evasion and AML compliance gaps, and the competitive threat Hyperliquid poses to established trading venues. The platform has expanded beyond crypto derivatives and is also moving into tokenized commodities, which has intensified attention from traditional market operators.
Three pressure points raised by traditional exchanges
On manipulation risk, traditional institutions argue that the decentralized structure of Hyperliquid may leave room for abusive trading behavior. The report pointed to the earlier JELLY token incident, which involved a malicious liquidation squeeze. On compliance, the offshore and on-chain nature of the platform is being framed as a possible channel for bypassing US sanctions or anti-money-laundering controls.
The competitive angle appears especially sensitive. Hyperliquid offers 24/7 liquidity in products tied to commodities such as crude oil, allowing trading to continue during weekends or when legacy venues are closed. That round-the-clock access puts direct pressure on markets built around fixed hours and centralized infrastructure.
Hyperliquid has started its own policy outreach
Hyperliquid has already taken steps to engage with policymakers. The report said the platform recently set up the Hyperliquid Policy Center and has been lobbying agencies such as the CFTC in an effort to secure a clearer compliance path for decentralized derivatives. For now, the regulatory push remains in the advocacy stage, with no formal enforcement action announced.
One detail stands out. Even as NYSE is involved in the push for stricter oversight, Bitwise's related ETF product, BHYP, is listed on NYSE. That contrast shows how traditional finance is approaching this segment from two directions at once: pressing for closer supervision while also seeking exposure to the market around Hyperliquid.