Key Highlights
- Hyperliquid Policy Center submitted comments following the CFTC’s Agricultural Advisory Committee meeting.
- The group backed the CFTC’s phased approach to perpetual futures rather than immediate expansion.
- The filing argues that broader product choice can benefit commercial market participants but says more research is needed before agricultural adoption.
The Hyperliquid Policy Center (HPC), an independent research and advocacy organization has filed a statement with the U.S. Commodity Futures Trading Commission (CFTC), urging regulators to continue their phased approach toward perpetual futures as discussions expand beyond digital assets into broader commodity markets.
According to the submission published on August 7, follows the CFTC’s Agricultural Advisory Committee meeting held on July 29, where committee members discussed innovation in derivatives markets, including whether perpetual futures could eventually serve commercial users outside the crypto sector.
While the filing supports continued exploration of perpetual futures, it also acknowledges that significant questions remain before such products could be applied to agricultural commodities.
Filing calls for gradual expansion
In its submission, HPC argued that commercial demand, rather than regulatory restrictions, should drive the introduction of new derivative products.
The organization said agricultural producers already rely on a range of risk-management tools—including crop insurance, futures, and options—and suggested perpetual futures should be evaluated as another possible instrument rather than a replacement for existing markets.
“End-user demand and market forces should ultimately drive the introduction of such products,” the filing states.
HPC also pointed to the history of agricultural options markets, noting that products once viewed cautiously later became widely used after regulators allowed gradual adoption.
Questions remain for agricultural markets
Despite supporting further development, the filing stops short of advocating immediate approval for agricultural perpetual futures.
Instead, HPC identified several issues it believes require additional study, including whether perpetual futures can accommodate seasonal crop cycles, basis pricing, forward curves, and liquidity dynamics that differ from digital asset markets.
The organization also said more research is needed on how funding-rate mechanisms compare with traditional futures contracts that settle through expiration.
Blockchain infrastructure highlighted
The submission also argues that blockchain-based infrastructure could improve certain aspects of derivatives markets, including collateral movement, settlement efficiency, and capital mobility in continuously traded markets.
HPC referenced several recent CFTC initiatives involving tokenized collateral and stablecoins, arguing that public blockchain technology could complement existing market infrastructure while remaining subject to current regulatory oversight.
The Crypto Times has contacted the Hyperliquid Policy Center to better understand how it believes public blockchain infrastructure can improve derivatives market efficiency while preserving protections under the Commodity Exchange Act. A response was not immediately available.
Debate extends beyond crypto
The filing arrives as discussion over perpetual futures has broadened significantly in recent months.
In June, CFTC Chairman Michael Selig defended the regulator’s approval of U.S.-regulated crypto perpetual futures, rejecting criticism over the products’ legality, funding mechanisms, and investor protections.
More recently, prediction market platform Kalshi disclosed discussions with regulators about whether perpetual futures could eventually expand beyond cryptocurrencies into other asset classes, including traditional commodities.
The issue has also reached the courts. Earlier this year, Hyperliquid criticized CME Group’s lawsuit challenging the CFTC’s approval of regulated crypto perpetual futures, arguing the case could influence whether U.S. traders gain broader access to the products.
HPC’s latest submission adds another perspective to that debate by focusing on how perpetual futures might eventually fit into agricultural and commercial commodity markets.
No regulatory decision yet
The filing does not change CFTC policy or signal approval for new perpetual futures products.
It is only a part of the Commission’s public consultation process as regulators continue evaluating industry feedback on whether perpetual futures should remain focused on digital assets or eventually expand into additional commodity markets.
Any broader rollout would require further regulatory review and additional consultation with market participants before implementation.
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