Hyperliquid Policy Center urges SEC and CFTC to align perpetual rules

The Hyperliquid Policy Center is urging the SEC and CFTC to adopt a harmonized framework for perpetual contracts as regulators consider how the products should be classified under US derivatives law. In a comment filed with the agencies, HPC argued that equity perpetual contracts with the traditional characteristics of futures should be eligible to trade as security futures. Under US law, derivatives are generally divided between futures and swaps, with different rules governing how they reach the market, who can trade them, and which venues can list them. Perpetual contracts complicate that distinction because they share several characteristics associated with futures, including standardized terms, fungibility, futurity, and the ability to exit by taking the opposite position. Unlike traditional futures, perpetuals do not have a fixed expiry date. HPC argued that this should not determine their classification because funding payments serve a similar function by keeping contract prices aligned with the underlying market. The CFTC approved the first US listed perpetual contracts in May, allowing them to trade as futures. The agency later said equity perpetuals could warrant review b...