CME and NYSE Push for U.S. Regulatory Oversight of Hyperliquid

Traditional finance (TradFi) giants CME Group and the New York Stock Exchange’s (NYSE) parent company, Intercontinental Exchange (ICE), are urging U.S. regulators to regulate Perp DEX Hyperliquid. These firms cited concerns about market manipulation and sanctions evasion on the decentralized platform.

CME And NYSE Urge U.S. Regulators To Regulate Hyperliquid

According to a Bloomberg report, the CME and NYSE are pushing the U.S. to regulate Hyperliquid, citing concerns that the exchange could skew global oil prices and be exploited for price manipulation.

These exchanges have also told the Commodity Futures Trading Commission (CFTC) and Capitol Hill officials that Hyperliquid’s decentralized trading environment poses risks of insider price manipulation or state actors seeking to evade sanctions.

The HYPE token fell sharply from an intraday high of around $45 following the report. The DEX token is currently trading at around $43, down over 2% today, according to TradingView data.

The HYPE token had surged as much as 20% yesterday after Coinbase and Circle announced a new partnership with Hyperliquid. As CoinGape reported, Coinbase will become the official USDC treasury deployer for the DEX platform.

Meanwhile, the CME and NYSE’s push for U.S. regulation of Hyperliquid comes as the Perp DEX continues to gain market share with its 24/7 derivatives platform. Notably, the DEX has its HIP-3 markets, which enable traders to trade traditional assets such as stocks and commodities, which the CME and NYSE offer.

The move from these TradFi giants has drawn a reaction from members of the crypto community, who have indicated that they are simply looking to attack the competition. On-chain sleuth ZachXBT noted that it was interesting that the NYSE only has an issue with Hyperliquid but not with Polymarket.

This came as he highlighted the NYSE’s stake in Polymarket. “Never mind, it all makes sense now,” he concluded. Hyperliquid is also in competition with Polymarket as the Perp DEX recently rolled out the HIP-4 upgrade on mainnet, which enables the creation of outcome markets.

Bitwise HYPE ETF Goes Live

The Bitwise Hyperliquid ETF has gone live amid the move from the CME and NYSE. In a press release, the crypto ETF issuer announced that the fund has begun trading on the NYSE under the ticker BHYP. The HYPE ETF is the second U.S. spot Hyperliquid ETF to launch, following 21Shares’ fund, which launched earlier this week.

Bitwise also revealed that it intends to stake the fund’s holdings through its in-house staking division. Asset manager Grayscale has also filed to launch a HYPE ETF and could do so soon. As CoinGape reported recently, Grayscale filed an updated S-1 to include staking its HYPE ETF.

Meanwhile, 21Shares’ Hyperliquid ETF posted a ‘solid’ day of trading on its first day, according to Bloomberg analyst James Seyffart. The fund has now attracted $1.17 million and $1.36 million in its first two days of trading and boasts net assets of $8.51 million.