Summary Hyperliquid Policy Center urges European regulators to classify perpetual futures under MiFID II based on their specific underlying economic characteristics. HPC recommends tailored i
Hyperliquid Policy Center has urged the European Commission to clarify how existing financial regulations apply to perpetual futures on public blockchains. According to its statement on X, the organization submitted recommendations through the Commission’s consultation on the Markets in Crypto-Assets Regulation.
Its submission advocates treating perpetual futures as financial instruments under MiFID II, rather than placing them within MiCA’s framework. HPC argues that contracts should receive regulatory classifications based on their economic characteristics, regardless of the technology supporting them.
The filing marks the organization’s first submission outside the United States and addresses investor access, market transparency, and regulatory responsibilities.
Meanwhile, the Commission’s consultation examines whether MiCA remains suitable as digital markets introduce new products and access arrangements. HPC views the review as an opportunity to clarify existing frameworks without requiring another legislative package for onchain markets.
Under its proposal, regulators would assess each instrument individually rather than determine its classification through its trading venue or blockchain.
Perpetual futures provide price exposure through contracts without expiry dates, allowing participants to maintain positions without repeatedly replacing expiring contracts. HPC argues that this structure concentrates liquidity within individual markets and reduces certain costs associated with dated futures. However, the organization also wants authorities to distinguish perpetual futures from contracts for difference when establishing investor protections.
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HPC argues that applying restrictions designed for contracts for difference could overlook important differences in how perpetual futures markets operate.
Its submission contrasts bilateral CFD arrangements with perpetual futures trading through central order books, where participants transact at market prices. Additionally, it highlights published funding mechanisms and public records of trades, funding payments, and liquidations in on-chain markets.
Consequently, HPC recommends requirements that reflect these structures, including full disclosure of funding, margin, and position close-out mechanics. It also proposes reference prices from multiple sources and phased access according to client categories.
— Hyperliquid Policy Center (@HyperliquidPC) October 1, 2026
Beyond product classification, the organization asks regulators to recognize public blockchain records when assessing transparency and recordkeeping requirements. HPC argues that supervisors can inspect publicly available market information directly, potentially reducing the need for duplicate reporting.
Moreover, its recommendations support European investors’ access to global liquidity, which it links to execution efficiency and broader price formation. Another proposal seeks clarification that regulated firms can use public blockchains without automatically changing product classifications or network status.
HPC has offered operational data, international comparisons, and practical examples to support further guidance from European authorities. Its submission asks the Commission to pursue these clarifications through existing ESMA guidelines, presenting them as achievable under current legislation.
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