The Hyperliquid Policy Center (HPC) and trading organization trade[XYZ] on Wednesday, August 26, petitioned the Commodity Futures Trading Commission (CFTC) to create a regulated US market for perpetual energy contracts.
If the Commodity Futures Trading Commission (CFTC) grants the request, it would provide US oil and gas traders with a domestic platform for 24/7 hedging of risks related to crude oil and natural gas, including nights and weekends when traditional futures markets are closed.
Joint Letter to Oil and Gas Companies
Both groups sent a joint letter with comments to the Commodity Futures Trading Commission (CFTC) concerning perpetual contracts linked to WTI crude oil, Brent crude oil, and Henry Hub natural gas.
HPC is an independent research and advocacy organization associated with the Hyperliquid Foundation.
trade[XYZ] is a HIP-3 platform that operates markets for perpetual securities with traditional assets based on Hyperliquid technology.
The project launched in October 2025 and has reportedly processed over $500 billion in cumulative trading volume since then.
In May, the Commodity Futures Trading Commission (CFTC) approved the first perpetual contracts traded as futures on a US exchange.
However, the regulator limited them to crypto assets only, and in its policy statement highlighted the energy sector as an asset class requiring further study.
In June, the CFTC requested public comment on perpetuals tied to stored, physically deliverable commodities. HPC and trade[XYZ] are responding to that request, and energy is the logical next asset class for them after digital.
The February Oil Crisis is a Prime Example
The letter referenced February 28, when Middle East hostilities led to a halt in regional energy exports, and US oil futures were suspended for part of the initial shock.
While fighting continued, Brent crude oil prices neared $120 per barrel by March 9. This caused aviation fuel prices to double in a very short period. Airlines that had hedged fuel prices weathered the crisis, while those without sufficient reserves suffered losses.
Perpetual contract trading tied to oil prices on Hyperliquid continued even during the exchange window closure.
HPC and trade[XYZ] stated that about two-thirds of the price change between Friday's market close and Sunday's underlying index reopening had already occurred on the blockchain before traditional trading venues reopened.
Why a Perpetual Contract Can Track Price
A perpetual contract has no settlement date. Instead, a regular funding payment pushes its price towards the price of the asset it references.
HPC and trade[XYZ] said they do not advocate for eliminating fixed-date futures, which are still suitable for traders needing delivery in a specific month or physical settlement.
The groups stated that standard WTI crude oil futures move in lots of 1,000 barrels, which is about $70,000 in notional value at current prices. The median price for the over-the-counter oil [XYZ] market is about $1,300.
HPC also references its research "Perpetual Futures as a Complement to Fixed-Date Futures," which found that in nearly 75% of analyzed weekend market closures, the price of the perpetual oil future was closer to Sunday's opening price than to Friday's closing price.
What Did HPC and trade[XYZ] Ask the CFTC to Do?
In their comment letter, the authors asked the CFTC to take five steps to implement perpetual energy contracts on regulated US markets. They stated the CFTC could do this without needing new legislation.
- The first item on the list is implementing a technology-neutral system for 24/7 trading.
- The second step suggested by HPC and trade[XYZ] is for the agency to confirm that exchanges and clearinghouses can operate continuously under existing core principles.
- The third step proposes that the Commodity Futures Trading Commission (CFTC) clarify what a "business day" means for markets that never close.
- The fourth step is for the agency to recognize stablecoins and tokenized collateral as acceptable margin.
- Finally, they asked the regulator to confirm that regulated venues can use blockchain for clearing and settlement, respectively.
Expansion of Hyperliquid's US Market Entry Strategy
A few days earlier, HPC urged the SEC and CFTC to harmonize the classification of perpetuals based on economic structure, not the underlying asset.
The lobbying is political, as President Trump stated that CFTC Chairman Michael Selig is working to bring Hyperliquid to market "in full compliance with the law and within the legislation."
Hype increased 40% following President Trump's statement.
However, not everyone agrees with this development, as in June, CME sued the CFTC over its decision to permit perpetual futures. Exchanges including CME and ICE stated that Hyperliquid should register with the agency.
According to CoinMarketCap data, HYPE traded around $82.12 on Wednesday .
