CME Group and Intercontinental Exchange, the parent company of the New York Stock Exchange, are urging U.S. regulators and lawmakers to increase scrutiny of decentralized derivatives exchange Hyperliquid, according to a Bloomberg report. The two exchange operators have raised concerns with officials at the Commodity Futures Trading Commission and members of Congress over Hyperliquid’s fast-growing perpetual futures market. Their concerns center on market manipulation, sanctions evasion and the possible effect of decentralized trading activity on traditional commodity price discovery. Hyperliquid has become one of the largest on-chain derivatives venues, with strong trading volume in perpetual futures and synthetic exposure to assets such as commodities and equities. The platform operates around the clock and allows users to trade leveraged products outside traditional exchange hours. The report said CME and ICE believe Hyperliquid’s decentralized structure and largely anonymous trading environment could allow bad actors to influence prices or avoid financial restrictions. The firms are reportedly pressing for greater oversight, including possible CFTC registration requirements for platforms offering derivatives to U.S. users. CME and ICE Raise Market-Manipulation Concerns CME and ICE operate some of the world’s largest regulated derivatives and commodity markets. Their concerns reportedly focus on whether Hyperliquid’s trading activity could affect reference prices in areas such as oil, where traditional markets rely on regulated venues and benchmark processes. Hyperliquid’s expansion into synthetic markets through HIP-3 has placed the platform closer to markets long dominated by traditional exchanges. These products allow traders to gain exposure to assets such as stocks and commodities through on-chain contracts. Traditional exchange operators argue that anonymous or lightly regulated trading venues may create risks if large participants coordinate trades, use insider information or route activity through entities tied to sanctioned jurisdictions. The concerns come as CME is also expanding its own crypto derivatives business. The exchange is preparing to launch Bitcoin Volatility Futures on June 1 and Nasdaq CME Crypto Index Futures on June 8, pending regulatory approval. These products are aimed at institutional traders seeking regulated crypto exposure. Hyperliquid Defends On-Chain Market Model Hyperliquid has responded to the report by rejecting the concerns as unfounded. The platform argued that public blockchains provide transparent transaction records that can make hidden manipulation harder than in private market structures. The decentralized exchange said its model offers 24/7 market access, reduced price gaps and public visibility into market activity. It also said that on-chain systems can create a more open environment for regulators because transactions and positions can be reviewed on public infrastructure. Hyperliquid has grown rapidly across the on-chain derivatives sector. As of May 2026, Hyperliquid reportedly controls 53% of fees generated across the on-chain derivatives sector, while open interest has reached $2.45 billion. The platform’s growth has made it a direct competitor to both centralized crypto exchanges and traditional derivatives venues. Concurrently, crypto investigator ZachXBT has pointed to ICE’s reported financial ties to Polymarket while questioning why NYSE owner ICE was raising concerns about Hyperliquid but not the prediction market platform. A screenshot attached to his post noted that ICE finalized a $600 million investment in Polymarket in March 2026, following an earlier $1 billion investment, bringing its reported stake to about $1.64 billion. The comment added another layer to the debate over whether traditional exchanges are scrutinizing on-chain competitors evenly. The Hyperliquid Policy Center, an advocacy group linked to the ecosystem, has reportedly met with the CFTC to discuss a legal path for U.S. participation. The group is seeking a framework that would allow regulated access while recognizing differences between public blockchain markets and centralized exchanges. HYPE Price Falls After Oversight Report Hyperliquid’s native token, HYPE , fell after the Bloomberg report. The token declined from above $45 to below $43 before trading near $44, though it remained higher over 24 hours. The move followed a strong rally earlier in the week. HYPE gained after Coinbase and Circle announced partnerships tied to Hyperliquid. Coinbase said it would become the official USDC treasury partner deployed with the platform, adding a major U.S. crypto firm to its ecosystem. The market reaction shows that regulatory questions remain central to Hyperliquid’s valuation and growth outlook. A formal CFTC registration path could support wider institutional access, but stricter rules could also change how the platform serves users. The debate comes as U.S. lawmakers advance broader crypto market structure legislation. The CLARITY Act recently moved out of the Senate Banking Committee, aiming to define how digital asset securities and commodities are regulated.
