CME, ICE push U.S. regulators to scrutinize Hyperliquid over manipulation risks

CME Group and Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange, are urging U.S. regulators to scrutinize decentralized derivatives exchange Hyperliquid over concerns tied to market manipulation and sanctions evasion, according to a Bloomberg report on Friday.

Executives from CME and ICE have raised alarms with officials at the Commodity Futures Trading Commission (CFTC) and lawmakers on Capitol Hill, arguing that Hyperliquid’s rapidly growing perpetual futures marketplace could create systemic risks for traditional commodities markets, particularly oil, Bloomberg reported, citing people familiar with the discussions.

The exchanges reportedly believe Hyperliquid’s decentralized structure and largely anonymous trading environment could allow bad actors to manipulate prices or circumvent financial sanctions. CME and ICE warned regulators that the platform’s trading activity could potentially distort global oil benchmarks and open the door to insider coordination or state-backed entities attempting to evade U.S. restrictions, according to the report.

The concerns come as Hyperliquid has emerged as one of the fastest-growing decentralized exchanges in crypto, driven largely by soaring volumes in perpetual futures, or “perps,” trading. The platform operates continuously, offering traders round-the-clock access to leveraged derivatives markets outside the constraints of traditional exchange hours.

Native token HYPE fell following the report and was recently trading around $44, still up roughly 4% over the past 24 hours. This comes after a strong rally earlier this week, when the token surged as much as 20% on Thursday after Coinbase (COIN) and Circle (CRCL) announced partnerships involving the exchange. Coinbase said it would become the official USDC treasury partner deployed with Hyperliquid, strengthening ties between the platform and major U.S. crypto firms.

Hyperliquid has continued gaining market share through features such as its HIP-3 markets, which allow users to trade synthetic exposure to traditional assets including stocks and commodities — areas long dominated by CME and ICE. That expansion places the decentralized exchange in increasingly direct competition with established financial venues that operate under strict regulatory oversight.

Perpetual futures have become especially attractive to crypto traders because they allow leveraged exposure without expiration dates, enabling users to hold positions indefinitely while speculating on price movements. However, such products are generally not permitted for retail investors in the U.S. because regulators view them as high-risk derivatives that can expose traders to significant losses and excessive leverage.

For CME and ICE, Hyperliquid’s rapid ascent represents both a competitive threat and a regulatory challenge as decentralized finance increasingly encroaches on traditional financial markets.