Traditional exchanges are raising unified concerns. The Chicago Mercantile Exchange and Intercontinental Exchange have jointly pressured U.S. regulators, calling for enhanced federal oversight of the on-chain derivatives platform Hyperliquid. These two giants, which control the pricing of global benchmark oil prices, warn that Hyperliquid's anonymous trading environment could be exploited for market manipulation and sanctions evasion. They note that the platform's growing volume in oil-related derivatives has begun to impact the price discovery mechanism for global crude oil.
The 24/7 trading model is disrupting traditional markets. A core advantage of Hyperliquid is its "24/7" non-stop trading model. During periods of geopolitical tension when traditional markets are closed, the platform has become a crucial venue for traders to hedge risks. For instance, following the escalation of U.S.-Iran tensions in late February, its WTI crude oil perpetual contracts reflected price shocks in real-time over a weekend, nearly 48 hours before the Chicago Mercantile Exchange market opened. This "round-the-clock" liquidity has absorbed massive capital, and the two traditional exchange giants believe its scale is now sufficient to influence pricing during regular trading hours in turn.
Platform rebuttal: Dismisses concerns as "unfounded." Hyperliquid responded that its on-chain transaction records are fully public and transparent, arguing this can prevent hidden manipulation that exists in traditional markets. The platform recently established a Washington policy center, signaling a willingness to engage with regulators. However, critics point out that the fundamental issue is that Hyperliquid is taking business away from Wall Street. Notably, Intercontinental Exchange's significant investment in the prediction market Polymarket has led to accusations that it supports the crackdown on Hyperliquid, raising questions about whether the regulatory push is a form of "competitive lobbying."
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