WuBlockchain
CFTC Chairman Mike Selig said on the June 15 Bankless podcast that the agency is actively building a regulatory pathway for decentralized perpetual contract platforms modeled on Hyperliquid to operate onshore in the United States, rather than forcing them to comply with exchange rules written in 1934.
Why it matters
Selig framed blockchain-native 24/7 trading as the future of market structure and argued regulators should lean in rather than apply outdated frameworks rigidly. He acknowledged that mechanisms like auto-deleveraging introduce new considerations, but said the CFTC's objective is a compliant path that keeps the next generation of finance building inside the US — conditional on investor fund protection and adequate disclosures.
Market impact
The signal lands directly on Hyperliquid and the broader on-chain perpetual DEX sector, which has grown into a meaningful share of crypto derivatives volume outside US jurisdiction. A workable US registration framework would open institutional and retail flow that today sits offshore by default. The next milestone to watch is any formal CFTC rulemaking or no-action letter that converts Selig's podcast comments into binding guidance.
Frequently asked questions
-
What did the CFTC chair say about Hyperliquid?
On the June 15 Bankless podcast, CFTC Chairman Mike Selig said the agency is actively working on a regulatory pathway for decentralized perpetual contract platforms modeled on Hyperliquid to operate onshore in the United States.
-
Will on-chain perpetual DEXs have to follow 1934-era exchange rules?
Selig argued regulators should lean into blockchain-native 24/7 trading rather than rigidly apply outdated 1934 exchange rules, while still ensuring investor fund protection and adequate disclosures.
-
What conditions did the CFTC set for onshore on-chain markets?
Selig said a compliant path forward depends on investor funds being protected and adequate disclosures being maintained for new on-chain products and platforms.
-
Why are auto-deleveraging mechanisms a regulatory consideration?
Selig acknowledged that on-chain mechanisms like auto-deleveraging introduce new considerations that don't map cleanly onto traditional derivatives frameworks, which is why tailored regulation is needed.
-
What happens next after the CFTC chair's comments?
The next milestone is formal CFTC rulemaking or a no-action letter that would convert Selig's podcast remarks into binding guidance for perpetual DEX operators seeking US registration.
Crypto News
CoinTelegraph
TheBlock
CryptoSlate
WatcherGuru
CoinDesk