Hyperliquid’s native token, HYPE, surged by 15% on May 23, 2025, following the team’s submission of formal responses to the U.S. Commodity Futures Trading Commission (CFTC) regarding the proposed regulation of perpetual swaps and 24/7 crypto trading. Hyperliquid Labs expressed support for the CFTC’s proactive stance and advocated for the integration of DeFi frameworks to enhance financial products. This submission marks a significant engagement between a DeFi-native protocol and U.S. regulators, emphasizing the evolving maturity of the sector and the need for favorable policy frameworks. The CFTC had invited public feedback on managing crypto derivatives in a continuous trading environment, and Hyperliquid framed its response as a case study demonstrating how decentralized infrastructure can meet or exceed traditional market standards. The project is gaining attention as on-chain volumes grow, indicating rising trader activity, especially from larger players placing significant positions. The team's commitment to supporting DeFi amidst regulatory dialogue positions Hyperliquid as a potential leader in financial innovation while aiming to protect users effectively.

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