Hyperliquid and TradeXYZ ask U.S. regulator to allow oil perpetual contracts
Groups push for U.S. oil perpetual contracts
The Hyperliquid Policy Center (HPC) and trading platform TradeXYZ have asked the U.S. Commodity Futures Trading Commission (CFTC) to create rules that would allow oil perpetual contracts to be traded in the United States. In a letter sent on August 26, 2026, the groups argued that these contracts could help businesses manage risk more effectively, especially during global supply disruptions.
Perpetual contracts, often called "perps," are a type of futures contract that does not expire. They let traders bet on the price of an asset, like oil, without owning it directly. Currently, most perpetual trading happens on platforms outside the U.S., which are not regulated by American authorities.
Why 24/7 trading matters
The letter highlighted a recent event in the Middle East where the U.S. and Israel conducted missile strikes on Iran. This caused oil supply shocks over a weekend when traditional oil futures markets were closed. However, platforms like Hyperliquid operate 24 hours a day, seven days a week, allowing trading to continue even when traditional markets are shut.
"When another crisis breaks on a Saturday night, American businesses should not have to wait until Sunday evening to manage their risk," the Hyperliquid Policy Center said in a post on X (formerly Twitter).
Key requests to the CFTC
- The groups asked the CFTC to create a "technology neutral" framework, meaning the rules should not favor one type of technology over another.
- They want the CFTC to clarify what counts as a "business day" for timing requirements.
- They emphasized that perpetual contracts are not meant to replace traditional futures but should exist alongside them.
What the CFTC has done so far
Earlier this year, the CFTC took steps to allow bitcoin perpetual contracts in the U.S. In May 2026, the agency approved KalshiEX and Coinbase to list these products. In June 2026, the CFTC also asked for public comments on crude oil perpetual contracts and 24/7 trading.
This is not the first time Hyperliquid has engaged with regulators. Earlier in the week, the Hyperliquid Policy Center sent a letter to both the CFTC and the Securities and Exchange Commission (SEC) asking for a unified set of rules for perpetual contracts.
What is confirmed
- The Hyperliquid Policy Center and TradeXYZ sent a letter to the CFTC on August 26, 2026, asking for a regulatory framework for oil perpetual contracts.
- The CFTC has previously allowed bitcoin perpetual contracts and sought public comments on oil perpetuals.
- Hyperliquid operates 24/7, unlike traditional markets that close on weekends.
What is still unclear
- It is not known if or when the CFTC will approve a framework for oil perpetual contracts.
- The CFTC has not yet responded to the latest request from Hyperliquid and TradeXYZ.
Why this could be important
If the CFTC creates a regulatory path for oil perpetual contracts, U.S. businesses could trade these products under American oversight. This might help them manage risk more effectively during global crises, especially when traditional markets are closed. It could also bring more trading activity onto regulated platforms instead of offshore exchanges.
