The Hyperliquid Policy Center has urged European regulators to classify perpetual futures as derivatives under existing rules rather than create a separate regulatory framework for crypto-linked contracts.
In a submission to the European Commission's review of the Markets in Crypto-Assets Regulation, HPC argued that financial instruments on public blockchains should remain subject to MiFID II oversight. The group stated that blockchain technology alone should not determine regulatory treatment; instead, product features and economic characteristics should guide classification.
MiFID II Framework and Perpetual Futures
HPC applied this reasoning to perpetual futures, which have no fixed expiration date. The group identified key characteristics shared with derivatives already regulated under MiFID II and sought confirmation of this treatment through existing European Securities and Markets Authority guidelines. This approach would prevent establishment of a new separate regulatory category for crypto-linked perpetual contracts.
HPC also distinguished perpetual futures from contracts for difference, noting that perpetuals are typically traded on order books while CFD providers often act as direct counterparties to customers.
Onchain Records and Transparency
HPC requested that regulators consider using public blockchain records to satisfy existing transparency requirements. Trades, funding payments, orders, and liquidations recorded on public networks could support independent verification and help firms comply with MiFID II record-keeping obligations.
The group recommended that disclosure requirements include funding rates, margin rules, reference prices, and position closing rules, with regulatory treatment reflecting the actual role of each participant and associated risks.
Platform Developments
The policy submission coincides with Hyperliquid's expansion of its onchain trading infrastructure. Manual borrowing functionality launched on September 18, allowing users to borrow USDC and USDT against supported collateral. Total borrowing has reached $269 million. The feature operates on the same HyperCore infrastructure supporting portfolio margin and other onchain trading functions.
Hyperliquid has also introduced HIP-3 functionality for permissioned markets, enabling deployment teams to manage onchain allowlists and control market access.
