Hyperliquid Urges CFTC to Approve 24/7 Energy Perpetuals

Hyperliquid Policy Center and tradeXYZ are urging the U.S. Commodity Futures Trading Commission (CFTC) to establish a regulatory framework for energy perpetual contracts, arguing that round-the-clock trading could strengthen hedging and price discovery during periods when traditional futures markets are closed.

In a joint letter to the CFTC, the groups proposed regulated perpetual markets tied to major energy benchmarks, including WTI crude oil, Brent crude and Henry Hub natural gas. tradeXYZ has offered perpetual markets on Hyperliquid since October 2025, generating more than $500 billion in cumulative trading volume, according to Bloomberg.

Unlike conventional futures contracts, perpetuals do not expire. Instead, funding payments help keep their prices aligned with the underlying asset, allowing traders to maintain exposure without repeatedly rolling positions into new contracts.

The proposal says energy perpetuals should complement rather than replace traditional futures, which remain important for physical settlement and traders seeking exposure to specific delivery months.

Hyperliquid Policy Center and tradeXYZ highlighted recent Middle East disruptions as evidence of the potential benefits of 24/7 energy trading. While U.S. oil futures were closed during part of the initial market shock, oil-linked perpetuals on Hyperliquid continued trading through the weekend. The groups said roughly two-thirds of the oil price adjustment between Friday's close and Sunday's reopening had already occurred in on-chain markets.

Research cited in the filing found that during nearly 75% of the weekend closures examined, crude perpetual prices ended closer to Sunday's reopening level than the benchmark's previous Friday close.

Such continuous markets could allow airlines, refiners, investment funds and other businesses to hedge sudden energy price movements without waiting for conventional exchanges to reopen.

The groups are asking the CFTC to establish safeguards including leverage limits, transparent funding and liquidation rules, and market integrity protections. They also want clarification on how regulations referring to a "business day" would apply to 24/7 markets.

Additionally, the proposal calls for stablecoins and tokenized traditional assets to be accepted as margin for cleared derivatives and seeks permission for compliant on-chain systems to handle trading, clearing, settlement and recordkeeping.