The groups want regulators to open a path for round-the-clock energy derivatives trading on U.S. platforms. The Hyperliquid Policy Center, working alongside trading platform tradeXYZ, has for
The groups want regulators to open a path for round-the-clock energy derivatives trading on U.S. platforms.
The Hyperliquid Policy Center, working alongside trading platform tradeXYZ, has formally urged the Commodity Futures Trading Commission to open a regulatory path for energy perpetual contracts in the United States. The request centers on oil perpetuals, a derivative structure long popular on offshore crypto exchanges but largely absent from domestic regulated markets.
Perpetual contracts differ from standard futures because they carry no expiration date. Traders can hold positions indefinitely, with funding rates periodically exchanged between long and short holders to keep prices tethered to the underlying asset. This structure has become a dominant trading format in crypto derivatives markets over the past several years.
Applying that model to oil and other energy commodities would represent a significant shift for U.S. market structure. Traditional oil futures trade on fixed schedules through exchanges like the CME, with contracts expiring on set dates. A perpetual format would allow continuous, 24/7 trading of oil-linked exposure, something not currently available through regulated U.S. venues.
The push comes as the CFTC continues to grapple with how to classify and oversee perpetual-style products more broadly. Crypto perpetual swaps already sit in a gray area for U.S. regulators, with most volume occurring on offshore platforms that American traders can access only through workarounds. Bringing energy perpetuals under a domestic regulatory umbrella would require the agency to define clear rules for margin, custody, and market surveillance.
Hyperliquid, the decentralized derivatives exchange linked to the Hyperliquid Policy Center, has built much of its business around perpetual futures trading, primarily for crypto assets. Extending that model to physical commodities like oil would broaden the platform's ambitions well beyond digital assets. TradeXYZ, the other party in the filing, is positioning itself alongside Hyperliquid in this specific regulatory effort.
The timing reflects a broader pattern of crypto-adjacent firms seeking closer engagement with U.S. regulators rather than operating solely offshore. Industry participants have increasingly argued that clear federal rules, rather than ambiguity, would better protect traders and encourage compliant market growth. Energy perpetuals would test how far that argument extends beyond crypto assets into traditional commodity markets.
It remains unclear how the CFTC will respond to the request, or what timeline any rulemaking process might follow. Commodity market structure changes of this scale typically involve extended comment periods, industry consultation, and careful review of systemic risk. The agency has not indicated when it might issue formal guidance on the proposal.
If the CFTC ultimately creates a pathway for energy perpetuals, it could reshape how U.S. traders access oil price exposure, introducing a continuously trading alternative to fixed-expiry futures contracts. This would also validate perpetual contract structures for physical commodities beyond crypto assets, potentially inviting similar proposals for natural gas, metals, or agricultural products.
For now, the request is a regulatory ask rather than an approved product, so no U.S. oil perpetual market currently trades under CFTC oversight. Energy traders and existing futures exchanges will likely watch closely, since a new perpetual framework could affect liquidity patterns and competition within established commodity derivatives markets.
The proposal signals continued interest from crypto-native firms in extending perpetual contract trading into traditional commodity markets, though any regulatory change remains pending CFTC review.
Energy perpetuals are perpetual futures contracts tied to commodities like oil, allowing continuous trading without a fixed expiration date, unlike standard futures.
The Hyperliquid Policy Center and trading platform tradeXYZ have jointly urged the Commodity Futures Trading Commission to create a regulatory path for these contracts.
No. U.S. oil markets currently trade through traditional futures contracts with set expiration dates, and perpetual-style oil contracts are not yet regulated domestically.
As reported, the CFTC has not issued formal guidance or a timeline for reviewing the proposal.
Originally reported by AltcoinGordon, written by Amelia Brooks. Republished with permission.
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