CME and ICE Push Crackdown on Hyperliquid Oil Trades

• CME and ICE warned Hyperliquid’s anonymous trading could expose oil markets to manipulation risks.
• Hyperliquid’s oil-linked perpetual futures volume surged during heightened Iran conflict tensions.
• Hyperliquid defended its on-chain transparency while seeking future CFTC rules for derivatives trading.

CME Group and Intercontinental Exchange urged U.S. regulators to increase oversight of crypto derivatives platform Hyperliquid over concerns tied to oil market pricing. According to Bloomberg, the exchanges warned the Commodity Futures Trading Commission and lawmakers that Hyperliquid’s anonymous trading structure could expose commodity markets to manipulation, insider activity, and sanctions-related risks. The concerns intensified after oil-linked perpetual futures activity surged during the Iran conflict earlier this year.

Exchanges Raise Concerns to Regulators

According to Bloomberg, CME and ICE argued that Hyperliquid operates outside the oversight applied to regulated futures exchanges. The companies reportedly want the platform registered with the CFTC.

The exchanges raised concerns that anonymous traders could influence benchmark pricing tied to global oil markets. They also warned that sanctioned entities or state-linked actors could exploit the platform’s structure.

ICE senior vice president Trabue Bland said benchmark integrity remained the central concern. He stated that activity outside regulatory oversight could create broader market problems.

Meanwhile, CFTC Chairman Michael Selig recently acknowledged the platform’s growing market influence. Selig said Hyperliquid activity could eventually affect spot oil prices and regulated futures markets.

Oil Trading Activity Expanded Rapidly

The scrutiny follows rapid growth in Hyperliquid’s oil-linked perpetual contracts during heightened tensions surrounding Iran. According to Artemis data, average daily turnover exceeded $700 million in April.

Previously, those contracts generated only several million dollars in daily activity. However, rising geopolitical tensions sharply increased speculative trading across energy-linked derivatives.

At the same time, Hyperliquid expanded beyond crypto into synthetic stock and commodity products. That move placed the Singapore-based exchange into direct competition with CME and ICE.

The exchanges operate under strict market surveillance, customer verification, and compliance standards. Hyperliquid currently does not face those same regulatory obligations.

Hyperliquid Defends Platform Structure

Hyperliquid defended its approach by highlighting blockchain transparency. Spokesman George Godsal said every trade, liquidation, and funding payment remains publicly verifiable on-chain.

Meanwhile, the Hyperliquid Policy Center stated the platform creates markets with fewer risks than traditional centralized exchanges. The organization expects the CFTC to eventually establish a framework for on-chain derivatives trading.

Hyperliquid launched the Washington-based Policy Center earlier this year under crypto policy lawyer Jake Chervinsky. The group has since held meetings with the CFTC regarding potential U.S. retail access pathways.

Separately, Hyperliquid recently stopped supporting its USDH stablecoin, which launched in September 2025 through Native Markets governance approval.