Hyperliquid Policy Center, the lobbying group for crypto derivatives market platform Hyperliquid, responded to a Bloomberg article highlighting concerns from traditional trading platforms about Hyperliquid’s perpetual contract market.
The group argued that concerns about market manipulation and sanctions evasion at traditional stock exchanges are “unfounded.”
The HyperLiquid Policy Center said in a statement that the platform is more transparent than traditional financial markets. The group said all transactions are publicly recorded on the blockchain in real time, which naturally deters insider trading and price manipulation. The statement also noted that it will allow regulators and law enforcement agencies to more easily track transactions, speeding up the detection and investigation process.
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The organization also claimed that Hyperliquid’s 24/7 uninterrupted trading mechanism will improve market efficiency. The statement noted that asset prices continue to fluctuate even when traditional exchanges are closed, and a continuously open market structure strengthens price discovery mechanisms.
The HyperLiquid Policy Center also said it agrees with the Bloomberg report’s assessment that “U.S. law has not yet established a clear regulatory framework for public blockchain-based derivatives markets.” The organization announced that it will continue to work with policymakers in Washington to integrate on-chain markets into the existing financial regulatory system.
Bloomberg reported that traditional derivatives market giants CME Group and Intercontinental Exchange are pressuring U.S. regulators to oversee HyperLiquid, citing risks of market manipulation and sanctions violations.
*This is not investment advice.
