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TLDR
- Hyperliquid Policy Center and trade[XYZ] filed a joint letter asking the CFTC to allow regulated perpetual contracts for WTI crude, Brent crude, and Henry Hub natural gas.
- The groups say their onchain energy markets have already handled more than $500 billion in trading volume since October 2025.
- The filing argues continuous trading could help firms hedge energy risk over weekends when U.S. futures markets are closed.
- A study cited in the letter found crude perpetual prices predicted nearly 75% of Sunday reopening levels.
- The CFTC is reviewing the idea but has not approved energy perpetuals yet.
Two groups tied to the Hyperliquid blockchain platform have asked U.S. regulators to open the door for a new kind of energy trading contract.
Hyperliquid Policy Center and trade[XYZ] sent a joint letter to the Commodity Futures Trading Commission on August 26. They want the agency to allow regulated perpetual contracts linked to West Texas Intermediate crude, Brent crude, and Henry Hub natural gas.
Perpetual contracts work differently from standard futures. They do not expire, and traders make ongoing funding payments to keep the contract price close to the real market price.
trade[XYZ] has offered these energy contracts on Hyperliquid since October 2025. According to the filing, its markets have generated more than $500 billion in total trading volume across several asset types.
Why Weekend Trading Matters
The filing points to a case from earlier this year as evidence. On February 28, conflict in the Middle East disrupted energy exports, but U.S. futures markets stayed closed until Sunday evening.
During that gap, Hyperliquid’s oil-linked contracts kept trading. The groups say about two-thirds of the price move that later showed up in the official Sunday reopening had already happened on their platform.
Brent crude went on to trade near $120 a barrel by March 9. Jet fuel prices doubled within weeks, based on news reports cited in the letter.
A separate study by Hyperliquid Policy Center compared perpetual prices to benchmark reopening prices. Across the weekend closures studied, the perpetual contract landed closer to Sunday’s opening price in nearly 75% of cases.
The same study found no measurable drop in the quality of CME’s WTI reopening prices after trade[XYZ] launched its own crude contract.
What The Filing Asks For
The letter asks the CFTC to treat blockchain-based trading systems the same as traditional ones, as long as they meet existing rules. This includes rules on margin, clearing, surveillance, and customer protection.
It also asks the agency to allow stablecoins and tokenized assets as collateral for these contracts. Traditional bank transfers pause on weekends, but blockchain-based collateral can move at any time.
The groups are not asking for crypto collateral to be used in uncleared swaps, which stay outside current rules.
They also proposed leverage limits based on asset type and clear disclosures about how funding payments and liquidations work.
The CFTC opened this review in June, looking at whether energy futures could trade continuously and whether perpetual contracts on physical commodities should be allowed. It extended the public comment deadline to August 26 after receiving requests for more time.
CFTC Chair Michael Selig has said the agency wants a solid, data-based record before making any changes to trading hours or contract types.
The commission previously approved a Bitcoin perpetual contract from Kalshi, marking the first federally regulated product of its kind in the U.S. That approval only applied to that specific contract and similar ones tied to digital assets.
Energy contracts involve physical delivery systems and benchmarks, so regulators are treating them as a separate question.
As of this filing, the CFTC has not approved energy perpetual contracts, and the public review process does not guarantee it will.
The post Hyperliquid Group Asks CFTC To Approve Energy Perpetual Contracts appeared first on Blockonomi.
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