Hyperliquid US entry gains CFTC backing as HYPE jumps 23%

President Donald Trump said the CFTC is working to bring Hyperliquid into the US market legally, sending HYPE up 23 percent to $71.90 on Aug. 20.

Trump made the remarks at a White House meeting with crypto and technology executives on Aug. 19. "I understand that Selig is working very diligently to bring Hyperliquid into the United States in a fully compliant, legal manner," Trump said, according to The Defiant.

CoinGecko data shows HYPE at $71.90 as of Aug. 20, up 23 percent over 24 hours and 26 percent over seven days. The token's market capitalization reached roughly $16 billion, ranking it No. 10 among cryptocurrencies, with daily trading volume of approximately $1.49 billion. The broader crypto market cap rose 7.5 percent to $2.45 trillion, with Ethereum up 18.5 percent on the day.

Hyperliquid currently blocks US users and operates without the DCM, FCM, and DCO intermediary layers that define the CFTC's regulatory framework for derivatives venues. The CFTC's inaugural Innovation Advisory Committee meeting, scheduled for Aug. 20 at 1 p.m. Eastern, is expected to address on-chain derivatives compliance pathways.

Binance founder Changpeng Zhao pushed back on the targeted approach, arguing on X that regulatory measures benefiting one firm should extend industry-wide. "Many people are missing the essential point," CZ wrote, reflecting concerns that a regulatory environment favoring specific companies could distort competition across the sector. The remarks carry personal weight: Binance has faced multiple legal challenges with US authorities, and a Hyperliquid-specific pathway could deepen the competitive gap between offshore and onshore crypto derivatives platforms.

The Compliance Paradox

Hyperliquid's product architecture removes all three intermediary layers the CFTC requires for derivatives venues. Smart contracts execute matching, on-chain protocols handle clearing, and users self-custody funds. In a joint comment letter submitted to the CFTC in July, Hyperliquid Policy Center and Phantom argued that registration requirements targeting custodial intermediaries should not automatically apply to non-custodial protocol developers.

The tension is structural: KYC verification, customer asset segregation, and market surveillance requirements would each erode Hyperliquid's differentiation against CME and Coinbase. CME already launched 7×24 trading in 2026, narrowing the on-chain venue's always-on advantage. Traditional exchanges are pushing back — ICE and CME jointly urged regulators in May to review Hyperliquid's expansion into commodities perpetual contracts, citing market manipulation risks, and CME separately filed a lawsuit over the CFTC's stance on crypto perpetual contracts.

The CFTC has not approved Hyperliquid to operate in the US, and no specific compliance path or timeline has been announced. The CLARITY Act, which would establish full federal rules for digital asset markets, remains stalled in the Senate. The CFTC's Innovation Advisory Committee — whose members include the CEOs of Coinbase, Robinhood, Kalshi, and Polymarket — held its first meeting on Aug. 20.

Coinbase announced on Aug. 19 that eligible Base App users would gain access to more than 290 perpetual-futures markets through Hyperliquid, supporting up to 50x leverage. The service remains unavailable in the US, UK, Canada, and other jurisdictions that restrict leveraged digital-asset derivatives.

Derivatives data shows elevated positioning: aggregated futures open interest reached approximately $3.01 billion on Aug. 20, up 16.43 percent over 30 days. Twenty-four-hour liquidations totaled approximately $43.21 million, with short liquidations accounting for 87.6 percent. Funding was positive in 152 of the previous 180 four-hour periods, with the latest rate at 0.0125 percent per four hours, above the 30-day average of 0.0038 percent.

Whether the CFTC designs a new compliance framework for on-chain perpetual contracts or Hyperliquid adapts its structure to existing rules will determine how much of the decentralized venue's product purity survives the transition into US markets.

This article is for informational purposes only and does not constitute investment advice.