TLDR
- ICE said it held several Hyperliquid meetings to assess overlap in onchain perpetual futures trading.
- Sprecher asked why regulated exchanges face limits while similar global crypto markets keep operating globally.
- ICE is working with OKX on oil perpetual contracts linked to Brent and WTI benchmarks.
- Hyperliquid activity rose as traders used weekend markets for oil exposure during Middle East conflict.
- Regulators may decide whether onchain perpetuals fit new rules or existing swap laws in markets.
NYSE parent Intercontinental Exchange is reviewing the onchain perpetual futures market as global trading activity grows. ICE chair and CEO Jeffrey Sprecher said the company held several talks with Hyperliquid. He said ICE wants clear rules before entering the market further. The comments came during a Bernstein conference fireside chat on Wednesday.
ICE seeks equal rules for onchain perpetual futures
Sprecher said ICE has asked regulators about the treatment of onchain perpetual futures. He said similar products already trade on crypto platforms. However, regulated exchanges face tighter limits when they try to offer comparable markets.
“What we are saying to the regulators is, ‘Can we do that?’” Sprecher said. He added, “Why are you prohibiting us from doing this when it’s already happening?” He also asked for a “level playing field” for firms under existing rules.
Sprecher said regulators must decide how to classify these products. They may create a new rule set for perpetual futures. They may also treat them as swaps under laws such as Dodd-Frank and EMIR.
The ICE chief said the question matters because these markets operate worldwide. He said, “This stuff is global.” He also asked why some crypto firms avoid the same warning letters sent to regulated firms.
Hyperliquid talks shape ICE’s market review
ICE has met the Hyperliquid team several times, according to Sprecher. He said the talks focused on areas where both businesses could overlap. He described the meetings as a way to understand the onchain perps market.
“We’re not freaked out about it,” Sprecher said. He added that ICE is “talking to these people and learning about it.” He said both sides are sharing how their markets work.
The comments followed a Bloomberg report about ICE, CME, and talks on Capitol Hill. The report said the firms discussed risks tied to Hyperliquid. It said some concerns involved energy markets and global oil prices.
Sprecher said the conversations were more exploratory from ICE’s side. He said ICE is looking at whether it can enter the market lawfully. He added, “We’d like to do more of it if you think it’s lawful.”
Oil perps and private markets draw attention
ICE is also working with OKX on oil perpetual contracts. The products would track ICE’s Brent Crude and WTI Crude energy benchmarks. The plan shows how traditional exchanges may test crypto-linked markets.
Hyperliquid has drawn more activity from non-crypto traders, according to the article. Some traders used its 24/7 markets to gain oil exposure outside regular hours. Sprecher linked part of the interest to weekend events in the Middle East.
“It just so happens in this time of conflict in the Middle East,” Sprecher said. He said many market decisions happened during weekends. That added attention to markets that remain open every day.
Sprecher also pointed to private company trading on blockchain-based platforms. He referred to pre-IPO perpetual futures tied to SpaceX on TradeXYZ. He said the market may show how traders price private firms before listings.
He said the reported SpaceX listing date could test that view. “It’s going to be really interesting to watch,” Sprecher said. He asked whether private market prices could affect the public offering price.
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