Circle · CME Group · Coinbase · New York · CoinDesk
Executives from CME and ICE have raised alarms with officials at the Commodity Futures Trading Commission (CFTC) and lawmakers
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◎ Multiple-sources
The exchanges reportedly believe Hyperliquid’s decentralized structure and largely anonymous trading environment could allow bad actors to manipulate prices or circumvent financial sanctions.
Key facts
- Native token HYPE fell following the report and was recently trading around $44, still up roughly 4% over the past 24 hours
- Hyperliquid has continued gaining market share through features such as its HIP-3 markets, which allow users to trade synthetic exposure to traditional assets including stocks and commodities, areas
- CME Group and Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange, are urging U.S. regulators to scrutinize decentralized derivatives exchange Hyperliquid over concerns
- This comes after a strong rally earlier this week, when the token surged as much as 20% on Thursday after Coinbase (COIN) and Circle (CRCL) announced partnerships involving the exchange
Summary
CME Group and Intercontinental Exchange have urged U.S. regulators to scrutinize decentralized derivatives platform Hyperliquid, warning it could enable market manipulation and sanctions evasion. The exchanges told the CFTC and lawmakers that Hyperliquid’s anonymous, round-the-clock perpetual futures trading could distort key commodities benchmarks, particularly in global oil markets. Hyperliquid’s rapid growth, expanding into synthetic markets for stocks and commodities and securing partnerships with Coinbase and Circle, has intensified its competitive and regulatory clash with traditional, tightly supervised exchanges. CME Group and Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange, are urging U.S. regulators to scrutinize decentralized derivatives exchange Hyperliquid over concerns tied to market manipulation and sanctions evasion, according to a on Friday.