Hyperliquid in Discussions With CFTC for U.S. Compliance, HYPE Hits New ATH

Hyperliquid Labs revealed today the details of two comment letters that it submitted to the U.S. Commodity Futures Trading Commission (CFTC) addressing perpetual derivatives and 24/7 trading regulations. Why did the platform take this regulatory approach as the HYPE price hits a new ATH?

Why Did Hyperliquid Submit Letters to CFTC?

Hyperliquid Labs submitted two comment letters to the Commodity Futures Trading Commission in response to the regulator’s Requests for Comment on perpetual derivatives and 24/7 trading. The platform basically wanted to be a practical example of how decentralized finance principles can address regulatory concerns and also maintain market efficiency and user protection.

The submission on 24/7 trading highlighted Hyperliquid’s operational capabilities. This includes continuous liquidity through pre-funded collateral that removes reliance on traditional banking infrastructure. The platform’s automated liquidation system continuously reassesses margin requirements with every trade and oracle price update. This also addresses collateral management concerns raised by the CFTC.

The following post is from Hyperliquid Labs

Hyperliquid Labs is committed to the advancement of defi and its promise in delivering a more open, transparent, and efficient financial system for all. As a contributor to the Hyperliquid blockchain, we believe in defi’s ability not…

— Hyperliquid (@HyperliquidX) May 23, 2025

Regarding perpetual derivatives, Hyperliquid emphasized the advantages of on-chain implementation. The platform advocated for a principles-based regulatory approach focusing on risk profiles and consumer protection rather than fixed classifications that could limit innovation.

The company expressed commitment to being a constructive partner with regulatory bodies and also supports the United States’ position as a leader in financial innovation. Hyperliquid’s letter submission comes at a time when Bitcoin has hit a new all-time high and is at risk of crashing to $100k.

HYPE Price Hits New ATH

HYPE token has reached a new all-time high of $35.9 and has continued its strong price surge. The token has shown gains of 14.1% over 24 hours, 31.3% over 7 days, and 84.4% over the past month. This price surge comes amid growing institutional attention, regulatory moves and high-profile endorsements from cryptocurrency industry figures.

Beast mode$HYPE pic.twitter.com/cejogf9m07

— Arthur Hayes (@CryptoHayes) May 22, 2025

Arthur Hayes, former BitMEX CEO, has been particularly bullish on HYPE. He recently purchased $2 million worth of tokens when they were trading at $14.6. Hayes has maintained his prediction that HYPE could reach $100 per token. This prediction comes amidst trader James Wynn’s massive leveraged trading position on Hyperliquid and called it the best advertisement for the platform.

The former exchange executive has continued to show support for the token. He posted a HYPE chart few hours ago and called it “Beast Mode.” Hayes’ $100 price target suggests he sees substantial upside potential from current levels.

Whale Lost $23.5M Post Price Surge

A major whale investor has suffered losses attempting to short HYPE tokens during the recent price surge. The whale, identified by wallet address 0x20B1, was forced to capitulate and close all HYPE short positions approximately two hours after the token’s rally intensified. This resulted in a $23.5 million loss.

According to Lookonchain data, this investor had been consistently betting against HYPE since April 29. The whale also deposited a total of 30.5 million USDC to Hyperliquid to maintain short positions with 5x leverage. However, the upward price movement eventually forced the liquidation of these positions and the whale is left with only $6.98 million remaining from the original capital.

Analyst Ansem has drawn parallels between HYPE’s current price action and early Solana in 2021. He noted similarities in the fractal patterns. Ansem points out that while Solana partnered with FTX, Hyperliquid operates with HyperCore and HyperEVM as a fully on-chain perpetual exchange, with approximately 97% of revenue flowing directly back to token holders.