Hyperliquid Policy Committee urges EU to regulate perpetual futures under MiFID II
The Hyperliquid Policy Committee has submitted feedback to the European Commission's MiCA consultation, calling for crypto perpetual futures to be regulated under existing MiFID II frameworks rather than new rules.
In its first regulatory filing outside the United States, the Hyperliquid Policy Committee submitted an official response to the European Commission's targeted consultation on the evolution of the Markets in Crypto-Assets (MiCA) regulation. The committee urged European authorities to build upon existing frameworks rather than establish a new regulatory regime, proposing that perpetual futures be classified and governed under MiFID II via existing European Securities and Markets Authority (ESMA) guidelines without requiring new legislation.[4][1][5]
The committee argued that instrument classification should adhere to economic substance over form, maintaining that the blockchain technology hosting a financial contract should not dictate its classification. Because perpetual futures trade on transparent central limit order books, the group argued they should avoid the rigid retail restrictions designed for bilateral contracts for difference (CFDs). The committee also called for venues to disclose funding methods, margin rules, and liquidation thresholds.[4][2][5][1]
To streamline operational requirements, the policy group asked EU regulators to recognize the native verifiability of public blockchains to remove redundant reporting requirements for data that is already recorded onchain. HPC also emphasized that European investors must keep unrestricted access to global liquidity pools, suggesting that integrating on-chain perpetuals into MiFID II would foster innovation while maintaining market stability and investor protection.[4][3]
Key facts
- The Hyperliquid Policy Committee submitted an official response to the European Commission's consultation on the evolution of MiCA, marking its first regulatory filing outside the United States.
- HPC urged EU regulators to govern perpetual futures under MiFID II and existing ESMA guidelines rather than creating new legislation under MiCA.
- The committee argued that classification must follow economic substance over form and that blockchain technology should not determine product classification.
- HPC maintained that perpetual futures trade on transparent central limit order books and should not face retail restrictions created for bilateral contracts for difference.
- The filing called for trading venues to disclose funding methods, margin rules, and liquidation thresholds.
- HPC urged EU regulators to recognize the native verifiability of blockchains to eliminate redundant reporting and advocated for European access to global liquidity pools.
Sources · 5 sources
- CB
Crypto Briefing@Crypto_BriefingPost on X ·
⚖️NEW: Hyperliquid Policy Center urges the EU to regulate perpetual futures under MiFID II rather than MiCA, arguing they should be treated as derivatives regardless of whether they trade onchain. https://t.co/pJQgtWrLrX
Open source - CO
CoinGape@CoinGapeMediaPost on X ·
🚨 Hyperliquid Urges EU Derivatives Rules The @HyperliquidX Policy Center urged #EU regulators to classify perpetual futures as #MiFID II derivatives, arguing that #blockchain technology should not determine financial-product classification. 🔗 Know more in comments
Open source - CB
Crypto BriefingArticle ·
Hyperliquid Policy Committee urges EU to fold on-chain perps into MiFID II Integrating on-chain perps into MiFID II could streamline regulation, fostering innovation while ensuring market stability and investor protection. The post Hyperliquid Policy Committee urges EU to fold on-chain perps into MiFID II appeared first on Crypto Briefing .
Open source - WB
Wu Blockchain@WuBlockchainPost on X ·
Hyperliquid Policy Committee Submits Feedback to European Commission on MiCA Evolution Hyperliquid Policy Committee (HPC) has submitted its official response to the European Commission's targeted consultation on the evolution of MiCA, representing its first regulatory filing outside the United States. HPC urged the Commission to build upon existing EU frameworks rather than construct a new regime, advocating that instrument classification adheres to economic substance over form so that perpetual futures are governed under MiFID II via existing ESMA guidelines without new legislation. The committee emphasized that perpetual trade on transparent central limit order books and should not be subjected to the rigid retail restrictions designed for bilateral contracts for difference (CFDs). Additionally, HPC called on EU regulators to recognize the native verifiability of public blockchains to eliminate redundant reporting requirements for data already recorded onchain, while ensuring European investors retain unrestricted access to global liquidity pools.
Open source - BS
BSCN@BSCNewsPost on X ·
Hyperliquid Challenges MiCA Approach As Circle Flags Stablecoin Gaps The Hyperliquid (@HyperliquidX) Policy Center has urged the European Commission to regulate crypto perpetuals under MiFID II. The group argues that existing derivatives rules can cover onchain perpetual futures. It says the blockchain hosting a financial product should not determine its classification. HPC also wants venues to disclose funding methods, margin rules and liquidation thresholds. The proposal was submitted during the Commission’s review of MiCA. Circle meanwhile criticized MiCA’s stablecoin framework and its coverage of major global tokens. The USDC issuer said only three of the top 25 stablecoins are currently MiCA regulated.
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