President Donald Trump stated on August 19 that CFTC Chair Michael Selig is working to bring the decentralized perpetual futures venue Hyperliquid into the US in a fully compliant manner. Currently, Hyperliquid's official interface keeps US persons off the platform, allowing the exchange to grow outside American oversight.
Hyperliquid has processed massive trading volumes, recording over $114 billion in perpetual futures volume during August alone, with open interest exceeding $10 billion. The protocol has surpassed $5 trillion in cumulative perpetual volume and generates close to $50 million in monthly protocol fees. Following Trump's remarks, HYPE rallied past $70, climbing 20%.
Speaking to the agency's Innovation Advisory Committee on August 20, Selig announced that if the CLARITY Act stalls in Congress, the CFTC will use its existing authority to build a crypto market regime independently. He noted that he directed staff to explore rules designating both current registrants and non-registrant crypto exchanges as a specialized designated contract market called a crypto asset market, which would permit leveraged or margined crypto trading under tailored rules.
Selig acknowledged that the agency's existing regulatory framework was built around centralized intermediaries—such as registered exchanges, clearinghouses, and brokers—and needs rethinking to accommodate wallets and decentralized protocols. A workable path for a venue like Hyperliquid would need to resolve several complex issues, including determining the regulated operator, identifying where KYC verification occurs, managing trading surveillance, controlling leverage, and safeguarding collateral.
If regulators successfully establish a working crypto asset market category, the framework could provide a reusable template for other offshore and on-chain perpetual venues seeking US access. However, outstanding steps including a public registration application, a confirmed legal entity, disclosed protocol changes, and a published KYC architecture remain necessary before any formal approval takes place.
