Hyperliquid Policy Center Backs CFTC in Legal Fight Over Perpetual Futures

The Hyperliquid Policy Center has filed a legal brief supporting the Commodity Futures Trading Commission (CFTC) and urging a court to dismiss a lawsuit brought by CME Group, accusing the traditional exchange of trying to stifle crypto innovation.

The case centers on the CFTC’s 2023 approval for LedgerX, a CFTC-regulated crypto exchange, to offer margined retail futures on cryptocurrencies like Bitcoin and Ethereum directly to customers. CME Group, the world’s largest derivatives exchange, sued the regulator, arguing this approval was unlawful and created an uneven playing field.

In its amicus brief, the Hyperliquid Policy Center, a think tank associated with the Hyperliquid decentralized derivatives exchange, argued that CME’s lawsuit is an attempt to “protect its monopoly” and limit competition. The group contends that LedgerX’s model, which uses a direct customer-to-exchange structure, is a legitimate innovation that should be allowed to compete with CME’s traditional broker-intermediated model.

The policy center’s intervention highlights the growing tension between established traditional finance institutions and new crypto-native entities over the future of derivatives trading. The court’s decision could significantly influence how regulated crypto derivatives are offered in the United States.