Hyperliquid Policy Committee, or HPC, said on Oct. 1 that it had submitted feedback to the European Commission’s targeted consultation on the evolution of the Markets in Crypto-Assets framework, known as MiCA. The filing marks the committee’s first policy submission outside the United States. In its response, HPC argued that the European Union should calibrate existing financial rules rather than rebuild the regulatory framework from scratch. It said crypto asset oversight should follow principles of technology neutrality and economic substance when classifying products. The group also proposed that onchain perpetual contracts be brought under the traditional financial instruments regime of MiFID II through existing guidance from the European Securities and Markets Authority, or ESMA, without new legislation. HPC added that perpetual contracts, which rely on public central limit order book matching, differ from traditional contracts for difference, or CFDs, that involve market-maker risk warehousing. On that basis, it said strict retail restrictions designed for CFDs should not be applied mechanically. The committee also urged regulators to recognize the public and verifiable nature of blockchain data, remove duplicative reporting requirements for information already available onchain, and preserve EU investors’ access to global liquidity.
Hyperliquid Policy Committee, or HPC, submitted feedback on Oct. 1 to the European Commission’s targeted consultation on the evolution of the Markets in Crypto-Assets framework, known as MiCA. It was the committee’s first policy filing outside the United States.
Adjust existing rules instead of rebuilding the framework
In its submission, HPC said the European Union should make measured adjustments within the current financial regulatory structure rather than start over. A central point in the filing was that classification should follow principles of technology neutrality and economic substance.
Onchain perpetuals should fall under MiFID II, HPC says
HPC proposed that onchain perpetual contracts be clearly brought under the traditional financial instruments framework of MiFID II through existing guidance from the European Securities and Markets Authority, or ESMA, without separate legislation.
The committee also said perpetual contracts are matched through a public central limit order book and are different from traditional contracts for difference, or CFDs, in which market makers take the other side of trades. Because of that distinction, it said tough retail restrictions designed for CFDs should not be applied mechanically to perpetual contracts.
Call to cut duplicate reporting and preserve liquidity access
HPC also urged regulators to recognize the native transparency and verifiability of public blockchains. It said regulated institutions should not face duplicate reporting burdens for data that is already publicly available onchain. The submission also called for safeguarding EU investors’ access to global liquidity to help maintain competitiveness.
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