Decentralized exchange Hyperliquid has dismissed manipulation concerns raised by two of the largest U.S. derivatives venues, even as its token HYPE (HYPE) sank to $40.
Wall Street Petitions CFTC On Hyperliquid
Intercontinental Exchange, the parent of the New York Stock Exchange, and CME Group have asked U.S. regulators to bring Hyperliquid under formal oversight, Bloomberg reported Friday.
Executives from both exchanges took their concerns to officials at the Commodity Futures Trading Commission and to lawmakers on Capitol Hill. They argued that Hyperliquid's anonymous, around-the-clock perpetual futures market could distort global oil benchmarks and open a channel for sanctioned entities.
The two firms want Hyperliquid to register with the CFTC, a step that would force customer identification and trade surveillance onto a platform built around pseudonymity.
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Hyperliquid Policy Center Calls Concerns Baseless
The Hyperliquid Policy Center, the project's Washington advocacy arm led by Jake Chervinsky, pushed back hours after the report surfaced. The group described the manipulation claims as unfounded and pointed to the platform's fully on-chain trade record.
Founder Jeff Yan said he would continue meetings with U.S. policymakers in pursuit of regulated access for American users.
Industry observers see the dispute as a turf war rather than a regulatory emergency. Pentathlon Investments managing partner Ilya Bushuyev told reporters that the traditional exchanges may be motivated as much by competition for revenue as by genuine integrity concerns.
CFTC Chair Michael Selig had already flagged the platform earlier this month, telling a conference audience that Hyperliquid could begin to influence prices on registered venues.
HYPE Price Erases Weekly Coinbase Rally
The token has built itself into a roughly $148 billion-volume derivatives venue, with traders using it to access oil and equity exposure outside traditional hours. That growth now places it in direct competition with ICE and CME, which together earned more than $5 billion last year.
HYPE slid roughly 14% to $40 in the hours after the Bloomberg report, wiping out gains tied to the recent Coinbase partnership and 21Shares spot ETF debut. The token had been trading above $45 earlier in the week before the regulatory headlines turned sentiment.
The slide caps a volatile stretch for HYPE, which has now retraced sharply from its September all-time high near $59 even as institutional onramps multiplied across April and May.
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