Donald Trump's statement that crypto-native exchange Hyperliquid could comply with US regulations reignites discussions on perpetual futures regulation
Donald Trump stated this week that Hyperliquid, a crypto-native exchange built around perpetual futures, is likely to comply with U.S. regulations. These remarks have reignited a fierce debate within the industry regarding the regulation of perpetual futures. Perpetual futures, which allow traders to leverage almost any asset by 10x or 50x without an expiry date, are currently expanding from crypto markets to commodities, indices, and single stocks. Wall Street is closely watching how the U.S. Commodity Futures Trading Commission (CFTC) will classify perpetual futures. If classified as swaps, it would lead to a 5-day margin requirement replacing the current 1-day rule, which could effectively eliminate 50x leveraged trading for retail investors in the U.S. market.
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