CME, ICE Ask U.S. Regulators to Probe Hyperliquid

CME Group and Intercontinental Exchange wrote to U.S. regulators in mid-May 2026 requesting an investigation into Hyperliquid, citing concerns about market manipulation and exposure to sanctioned parties. The filings ask authorities to review the platform’s structure and compliance controls. The Commodity Futures Trading Commission is among the agencies being asked to consider the matter. No formal enforcement action has been announced.

The filings highlight Hyperliquid’s permissionless design and 24/7 trading as potential blind spots for spoofing, wash trading and access by sanctioned actors. The firms asked regulators to examine how surveillance and sanctions controls operate when trading is continuous and accounts are self-custodied.

Hyperliquid is an on-chain derivatives platform offering perpetual contracts with high leverage, instant settlement and continuous trading. Supporters point to self-custody and transparent liquidation mechanics as advantages. One platform backer posted, “Self-custody, no KYC, fully on-chain perps, instant settlements.”

A central technical detail in the requests is Hyperliquid’s internal liquidity engine, the Hyperliquidity Provider, or HLP. HLP supplies liquidity, runs market-making strategies, handles liquidations and can absorb trader losses. The filings state HLP functions as a counterparty in practice, unlike traditional exchanges that match buyers and sellers without taking directional market risk.

Industry estimates cited in the filings put Hyperliquid’s fee revenue at about $65 million a month, or roughly $700 million annualized. The filings say a portion of those fees funds HYPE token buybacks through an Assistance Fund, a mechanism that channels trading fees into token repurchases.

U.S. regulators have increased attention on offshore and on-chain derivatives platforms this year. The filings ask agencies to determine whether existing futures-market regulations apply to permissionless protocols or whether new rules are needed to address surveillance, investor protection and sanctions compliance.

Market participants note that continuous crypto trading can shift price discovery to on-chain venues when traditional exchanges are closed. The filings arrive as some legacy venues explore extended trading hours and faster settlement technology.