Hyperliquid Policy Center urges EU to regulate perpetual futures as derivatives

The group emphasized that existing guidelines from the European Securities and Markets Authority (ESMA) already account for economic features when classifying financial instruments. HPC contends that perpetual futures, lacking a fixed expiration date, share key characteristics with other derivatives regulated under MiFID II. This approach, HPC stated, would prevent the creation of a distinct regulatory framework for crypto-linked perpetual contracts.

Furthermore, HPC suggested that regulators could leverage public blockchain records to meet transparency requirements, as trades, funding payments, orders, and liquidations are immutably recorded on these networks. The organization also requested that rules accurately reflect the roles and risks of each participant, advocating for disclosure of funding rates, margin rules, reference prices, and position closing rules.

HPC differentiated perpetual futures from contracts for difference (CFDs), noting that perpetuals typically trade on order books, whereas CFD providers can act as direct counterparties. This policy submission coincides with Hyperliquid's expansion of its onchain market infrastructure, including the launch of manual borrowing for USDC and USDT on September 18, which has since facilitated $269 million in total borrowing.