Key Takeaways
- Discussions between Hyperliquid Labs and Kraken’s parent entity Payward have progressed regarding U.S. access to crypto perpetual futures through Bitnomial, a Payward-owned subsidiary
- A formal proposal detailing the operational framework has been submitted to the CFTC by Payward, though final regulatory clearance remains outstanding
- According to former SEC legal counsel Ashley Ebersole, the regulatory review timeline may extend between 10 and 12 months
- Despite handling more than $4 billion in trading volume daily, Hyperliquid maintains geographic restrictions preventing U.S. users from accessing its services
- The HYPE token has experienced remarkable growth, climbing over 85% annually and touching a peak price above $86
A potential collaboration between Hyperliquid Labs and Payward, Kraken’s corporate parent, could pave the way for American cryptocurrency traders to access perpetual futures contracts. According to an initial Bloomberg report, the discussions focus on leveraging Bitnomialāa regulated Payward subsidiaryāas the designated U.S. trading platform.
Perpetual futures contracts represent derivative instruments that mirror underlying asset prices while eliminating traditional expiration dates. These financial products have gained significant traction on international and decentralized cryptocurrency platforms, though they face stringent regulatory oversight within American borders.
Hyperliquid maintains geographic restrictions that prevent American customers from accessing its decentralized trading platform, which facilitates over $4 billion in daily transaction volume. Under the contemplated arrangement, verified U.S. participants would gain entry to a curated range of crypto perpetuals connected to Hyperliquid’s markets via the Bitnomial infrastructure.
Earlier this year, Payward completed its acquisition of Bitnomial in a transaction valued at up to $550 million. This strategic purchase provided Payward with operational control over a comprehensive CFTC-approved derivatives framework encompassing exchange operations, clearing services, and brokerage capabilities.
Documentation outlining the proposed operational framework has already been delivered to the Commodity Futures Trading Commission by Payward representatives. However, official regulatory authorization has not yet been secured.
Approval Process May Extend Beyond One Year
Ashley Ebersole, who previously served as senior legal counsel at the SEC and currently holds the position of co-founder and chief legal officer at real-world assets platform tx., indicated that the authorization timeline could span at least 10 to 12 months, even under optimal circumstances.
According to Ebersole, both the Securities and Exchange Commission and Commodity Futures Trading Commission may require involvement in the review process. Updated interpretive guidance addressing custody protocols and order routing standards would probably be necessary before American traders could legitimately access these financial instruments.
The architectural design of the proposed framework aims to confine U.S. trading activities within a comprehensively regulated ecosystem. Bitnomial would assume responsibility for regulatory compliance matters, while American customers would be prohibited from obtaining direct access to Hyperliquid’s decentralized infrastructure.
Regulatory authorities have historically expressed apprehension regarding decentralized and permissionless platforms, emphasizing vulnerabilities related to market manipulation schemes, anti-money laundering deficiencies, and sanctions enforcement challenges.
Growing Momentum for Crypto Perpetuals in the United States
These negotiations unfold against a backdrop of increasing regulatory receptiveness toward cryptocurrency perpetual futures in America. The CFTC granted authorization to KalshiEX and Coinbase in May to offer these products. Subsequently in June, the regulatory body published a request for public commentary regarding crude oil perpetual contracts and round-the-clock trading capabilities.
President Donald Trump specifically referenced Hyperliquid during a media event attended by technology industry executives, stating that CFTC Chair Michael Selig was actively pursuing methods to integrate the platform into the U.S. market while maintaining full regulatory compliance.
The Hyperliquid Policy Center has also issued appeals to both the SEC and CFTC, urging harmonization of their respective regulatory frameworks governing perpetual contracts. The organization contends that enhanced regulatory clarity would encourage substantial migration of market activity to domestic venues.
A representative from Kraken declined to provide commentary regarding the ongoing discussions.
At the time of publication, HYPE was trading at $84.16, representing an intraday increase of approximately 2.5%. The digital asset has appreciated more than 85% over the preceding 12-month period and recently established an all-time high just above the $86 threshold.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
