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The Hyperliquid Policy Center filed an amicus brief in U.S. District Court for the District of Columbia on Thursday backing the CFTC's decision to allow perpetual futures to trade domestically, and asking the court to dismiss CME Group's June lawsuit against the regulator. The brief was authored by Elizabeth Prelogar, who served as US Solicitor General from 2021 to 2025, and argues that CME lacks standing to challenge a CFTC order that "enlarged the market rather than dividing it." CME, the world's largest derivatives exchange, sued the agency earlier this year after the CFTC approved the first US-domestic perpetual futures contracts for Kalshi and Coinbase last month.
Why it matters
HPC's brief makes a structural argument that goes well beyond this single case. Prelogar wrote that if CME's standing theory prevails, "every product that the CFTC approves will invite litigation from incumbents who prefer the status quo, and the pace of progress in the U.S. futures markets will slow to a crawl." That framing turns the case into a referendum on whether US derivatives regulation can accommodate new product categories like perpetuals, which dominate offshore crypto trading and have grown into a multi-billion-dollar market on decentralized venues like Hyperliquid. CME CEO Terrence Duffy has called perpetuals a "disaster waiting to happen" and argued they should be classified as swaps under Dodd-Frank, but HPC's brief notes that Kalshi has been a CFTC-regulated exchange since 2020 and that the order added no new competitors, only new market participants.
Market impact
The political backdrop sharpens the stakes. President Trump has said the CFTC is working to bring Hyperliquid onshore in a "fully compliant and legal fashion," a signal that the White House views domestic perpetual futures as a strategic priority. A ruling against CME would clear the runway for more US venues to list perps and could pull offshore liquidity back into regulated books.
Frequently asked questions
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What is the Hyperliquid Policy Center?
The Hyperliquid Policy Center is an advocacy organization associated with the Hyperliquid decentralized exchange. It filed an amicus brief in federal court on Thursday backing the CFTC in its legal fight with CME Group over US perpetual futures.
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Why did CME sue the CFTC?
CME sued the CFTC in June after the agency approved the first US-domestic perpetual futures contracts for Kalshi and Coinbase. CME argues perpetuals compete directly with its dated futures products and cause it competitive injury.
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Who is Elizabeth Prelogar?
Elizabeth Prelogar served as US Solicitor General from 2021 to 2025 under President Biden. She authored HPC's amicus brief arguing that CME lacks standing to challenge the CFTC's approval of domestic perpetual futures.
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What are perpetual futures?
Perpetual futures are derivatives contracts with no expiration date that let traders bet on asset price movements without owning the underlying asset. They have become the dominant product in offshore crypto derivatives trading.
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What happens if CME wins the case?
If CME's standing theory prevails, incumbent exchanges could potentially challenge any new product category the CFTC approves. HPC argues this outcome would "slow to a crawl" the pace of innovation in US futures markets.
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