Hyperliquid and tradeXYZ Seek CFTC Path for Energy Perpetuals in U.S. Markets

Hyperliquid Policy Center and tradeXYZ have asked the CFTC to allow regulated energy perpetual contracts. They argue that 24/7 trading could improve hedging and price discovery when traditional futures markets are closed.

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Hyperliquid Policy Center Pushes for Energy Perpetuals

Hyperliquid Policy Center and tradeXYZ submitted a joint letter to the U.S. Commodity Futures Trading Commission. Both groups want regulators to create a legal path for energy perpetual contracts and 24/7 trading in the United States.

The proposal covers products tied to WTI crude, Brent crude and Henry Hub natural gas. tradeXYZ has operated perpetual markets on Hyperliquid since October 2025. Its markets have recorded more than $500 billion in total trading volume, Bloomberg reported.

Unlike standard futures, perpetual contracts have no fixed expiry date. Funding payments help keep contract prices close to the assets they track. As a result, traders can maintain exposure without moving their positions into new contracts each month.

The groups said perpetual contracts should trade alongside standard futures rather than replace them. Dated futures would continue serving traders who need specific delivery months or physical settlement.

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Weekend Oil Trading Supports the Proposal

The filing points to the Middle East conflict that disrupted energy exports starting February 28. U.S. oil futures were closed during part of the initial shock. American companies with crude exposure therefore had limited options to adjust positions through regulated markets.

Oil linked perpetual contracts on Hyperliquid continued trading during the weekend. About two-thirds of the oil price move between Friday’s close and Sunday’s reopening had already occurred in on-chain markets, the groups said.

Research cited in the filing also examined how well the contracts tracked later prices. During nearly 75% of the weekend closures studied, crude perpetual prices finished closer to Sunday’s reopening price than the benchmark’s previous Friday close.

Continuous trading could give airlines, refiners, funds and other businesses another way to manage sudden changes in energy prices. These firms could adjust their exposure without waiting for traditional futures markets to reopen.

CFTC Asked to Set Rules for 24/7 Trading

The CFTC allowed the first regulated perpetual futures linked to digital assets in May. A later consultation examined perpetual contracts tied to physical commodities, including energy products.

Hyperliquid Policy Center and tradeXYZ want similar rules for energy markets. Their proposals include leverage limits and clear details about funding and liquidation. They also called for rules designed to protect market integrity.

Another request concerns regulations written around normal market hours. The groups want the CFTC to explain how terms such as “business day” would apply to markets that operate continuously.

They also proposed allowing stablecoins and tokenized traditional assets to serve as margin for cleared derivatives. Such assets can move outside normal banking hours, making them suitable for markets operating around the clock.

The filing further asks regulators to allow on-chain systems for trading, margin, clearing, settlement and recordkeeping when those systems meet existing CFTC requirements.

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