Hyperliquid in Discussions With CFTC for U.S. Compliance, HYPE Hits New ATH

Hyperliquid Labs revealed today the details of two comment letters that it submitted to the U.S. Commodity Futures Trading Commission (CFTC) addressing perpetual derivatives and 24/7 trading regulations. Meanwhile, HYPE has hit an all time high of $37.34 with price trading $37.25 at the time of reporting.

Hyperliquid Submit Letters to CFTC, What’s next?

Hyperliquid Labs submitted two comment letters to the Commodity Futures Trading Commission in response to the regulator’s Requests for Comment on perpetual derivatives and 24/7 trading. The platform basically wanted to be a practical example of how decentralized finance principles can address regulatory concerns and also maintain market efficiency and user protection.

The submission on 24/7 trading highlighted Hyperliquid’s operational capabilities. This includes continuous liquidity through pre-funded collateral that removes reliance on traditional banking infrastructure. The platform’s automated liquidation system continuously reassesses margin requirements with every trade and oracle price update. This also addresses collateral management concerns raised by the CFTC.

Regarding perpetual derivatives, Hyperliquid emphasized the advantages of on-chain implementation. The platform advocated for a principles-based regulatory approach focusing on risk profiles and consumer protection rather than fixed classifications that could limit innovation.

The company expressed commitment to being a constructive partner with regulatory bodies and also supports the United States’ position as a leader in financial innovation. Hyperliquid’s letter submission comes at a time when Bitcoin has hit a new all-time high and is at risk of crashing to $100k.

HYPE Price Hits New ATH

HYPE token has reached a new all-time high of $35.9 and has continued its strong price surge. The token has shown gains of 14.1% over 24 hours, 31.3% over 7 days, and 84.4% over the past month. This price surge comes amid growing institutional attention, regulatory moves and high-profile endorsements from cryptocurrency industry figures.

Beast mode$HYPE pic.twitter.com/cejogf9m07

— Arthur Hayes (@CryptoHayes) May 22, 2025

Arthur Hayes, former BitMEX CEO, has been particularly bullish on HYPE. He recently purchased $2 million worth of tokens when they were trading at $14.6. Hayes has maintained his prediction that HYPE could reach $100 per token. This prediction comes amidst trader James Wynn’s massive leveraged trading position on Hyperliquid and called it the best advertisement for the platform.

The former exchange executive has continued to show support for the token. He posted a HYPE chart few hours ago and called it “Beast Mode.” Hayes’ $100 price target suggests he sees substantial upside potential from current levels.

According to Lookonchain data, this investor had been consistently betting against HYPE since April 29. The whale also deposited a total of 30.5 million USDC to Hyperliquid to maintain short positions with 5x leverage. However, the upward price movement eventually forced the liquidation of these positions and the whale is left with only $6.98 million remaining from the original capital.

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Vignesh Karunanidhi

Vignesh Karunanidhi is a seasoned crypto journalist with nearly 7 years of experience in the cryptocurrency industry. He has contributed to numerous publications, including WatcherGuru, BeInCrypto, Milkroad, and authored over 10,000 articles

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