Hyperliquid Reportedly Seeks Path Into the US Market

Decentralized perpetual futures exchange Hyperliquid is seeking access to the US market. The Information first reported this, noting that the exchange wants to offer its derivatives products to US users.

According to the report, the perps DEX is looking to gain access to the US market through an existing regulated framework. Presently, Hyperliquid only operates offshore but has seen substantial growth in the past year.

Hyperliquid Policy Center Engage CFTC and Other Regulators to Push for Onchain Perps

The report noted that the Hyperliquid Policy Center (HPC), a research and advocacy group launched earlier this year, is engaging with US regulators to allow onchain trading. Last month, HPC and Phantom wrote to the Commodity Futures Trading Commission (CFTC) to modernize its framework to allow regulated access for the onchain derivatives platform.

The groups want CFTC to exempt developers of onchain software from exchange or clearinghouse registration requirements.  They argue that the rules were written for traditional custodial intermediaries and should fully apply to self-custodial markets because users retain custody of their assets.

Meanwhile, HPC also wrote to the CFTC Agricultural Advisory Committee, urging that the Commission should allow the US to participate in the onchain perps market. In the letter, the advocacy group called for gradual regulation of perps and highlighted how blockchain technology can make execution, clearing, and settlement more efficient.

However, Hyperliquid may have to contend with traditional exchanges that have already pushed back over concerns of market integrity and manipulation. The Chicago Mercantile Exchange and Intercontinental Exchange (ICE) have both raised these concerns, which HPC rejected as unfounded.

HYPE Price Rises as Options Traders Position for the Upside

Meanwhile, the news of Hyperliquid’s potential entry into the US market sparked a surge in HYPE price. The token rose by more than 3% today, peaking above $56.

HYPE’s price performance comes amid a broader market decline, with Bitcoin stuck at $63,000. The gains for HYPE today snapped it out of a decline that has seen it lose 11% of its value in the past 30 days.

However, it is not entirely surprising, with options traders already positioning for upside in HYPE’s price. According to Delphi Digital, roughly 69% of call open interest for the token is at least 15% above the current value, with the majority at $90. This reflects the strong bullish sentiment of traders.

Nevertheless, 60% of the puts on HYPE’s price are around $50 or below, suggesting that some expect any downside to be further from its current price. Still, upside demand has picked up most recently.

“Calls had been priced at a steep discount to puts for weeks, but most of that gap closed in a single session while overall IV has drifted up from a three-week low. The options market is positioned for a large move in either direction,” the crypto research firm said.

Regardless of its next price movement, HYPE is on track to be one of the best performers this year. While it is down from its peak of $76.85, HYPE remains up 121% year-to-date.

This article provides market information only and does not constitute financial or investment advice. Cryptocurrency markets are highly volatile. Readers should conduct independent research before making investment decisions.