Traditional exchanges CME Group and Intercontinental Exchange (ICE) are urging US regulators to tighten oversight of crypto platform Hyperliquid, warning that its fast-growing oil trading activity could distort global benchmarks and increase the risk of market manipulation, according to a report by Bloomberg.
The exchanges have raised concerns with the Commodity Futures Trading Commission and lawmakers, arguing that Hyperliquid’s anonymous, unregulated trading environment could be exploited by insiders or even state-linked actors. They say this could ultimately undermine price discovery in regulated energy markets.
Hyperliquid has seen a sharp surge in activity tied to oil-linked contracts, with average daily volumes jumping above $700m in April as geopolitical tensions in the Gulf drove volatility in energy prices. That compares with just a fraction of that level before the recent conflict escalation.
ICE and CME argue that while the platform remains small relative to regulated futures markets, its influence is growing because traders increasingly monitor its around-the-clock pricing as a signal for opening moves in traditional markets.
At the core of the dispute is Hyperliquid’s structure. The platform allows users to trade perpetual futures contracts using crypto wallets, often without providing identity information. That contrasts with regulated US exchanges, which are required to verify customers and monitor trading activity for compliance and market abuse risks.
The platform, co-founded by Jeff Yan, has expanded beyond crypto into commodities and other traditional asset classes, positioning itself as a decentralised alternative to established exchanges. Industry participants say its growth reflects demand for continuous, global trading access.
Traditional exchanges, however, argue that the rise of unregulated venues risks fragmenting price signals in key global markets such as oil, where benchmarks influence everything from fuel costs to airline pricing and industrial inputs.
Regulators are beginning to pay closer attention. Commodity Futures Trading Commission leadership has acknowledged concerns that activity on offshore platforms like Hyperliquid could spill over into US futures pricing.
The debate is also tied to broader structural change in markets, with CME exploring extended trading hours and other exchanges considering perpetual-style contracts to compete with crypto-native platforms.
Market participants say the tension reflects a wider shift: crypto-based derivatives platforms are increasingly moving into real-world assets, challenging the dominance of long-established, heavily regulated exchanges that have traditionally set global commodity prices.
