CME and ICE require CFTC regulation of Hyperliquid; the platform refutes manipulation allegations

Citing a Bloomberg report, Decrypt said that Intercontinental Exchange (ICE) and the Chicago Mercantile Exchange (CME) have informed the U.S. Commodity Futures Trading Commission (CFTC) that Hyperliquid poses a risk to market integrity, arguing that this Singapore-based decentralized exchange without KYC requirements may allow insiders or sanctioned entities to anonymously manipulate oil prices. On 5/15, Hyperliquid Policy Center (HPC) published a rebuttal, arguing that on-chain transparency itself is a deterrent against manipulation.

ICE, CME flag two major risks: oil price manipulation and sanctions evasion

The news comes from Bloomberg’s 5/15 report, citing sources familiar with the matter who said that ICE (the parent company of the New York Stock Exchange) and CME have listed Hyperliquid as a market integrity issue raised with the CFTC and Capitol Hill. The two traditional exchanges are asking Hyperliquid to comply with U.S.-regulated futures exchanges’ requirements—register with the CFTC and increase obligations around customer identity tracking and trade surveillance.

The core concern centers on oil price contracts. After Trump ordered the blockade of the Strait of Hormuz, Hyperliquid’s crude oil futures surged 7%, reflecting that the platform has become a preferred venue for hedging and speculation around geopolitical events. ICE and CME believe that if oil prices are manipulated off-exchange without oversight, it will flow back into the regulated global oil price benchmarks, affecting transportation and commodity costs.

Brent Perpetual Contracts have accumulated $21.5 billion in trading volume since the conflict began

According to on-chain data platform Allium, since the outbreak of the conflict in the Middle East, Hyperliquid’s Brent crude oil perpetual contracts have accumulated $21.51 billion in notional trading volume. As of 5/15, open positions for Brent perpetual contracts were about $306 million, accounting for 3.4% of Hyperliquid’s total open positions; by comparison, BTC perpetual contracts were $2.2 billion, accounting for 24%.

Hyperliquid is headquartered in Singapore, has no native KYC requirements, and restricts users from the U.S. and Ontario, Canada. This setup is similar to most DeFi applications such as Polymarket, but as contract categories expand into commodity derivatives, the regulatory gap with regulated exchanges like ICE and CME keeps widening.

HPC: U.S. law has not been tailored to public-chain derivatives markets

In an X post, the Hyperliquid Policy Center responded: “Hyperliquid’s transparency is itself a powerful deterrent against improper behavior, and helps regulators and law enforcement with monitoring, detection, and investigations.” HPC also acknowledged: “U.S. law currently has not been tailored for markets like Hyperliquid’s public-chain derivatives.” It added that it is continuing to work with policymakers in Washington.

HPC was established in February 2026, funded by Hyper Foundation with $29 million worth of HYPE tokens. It is positioned as an independent initiative and research organization in the DeFi space, providing legal and policy resources to members of Congress. As of 5/15, the HYPE price was $44.67, up 75% over the past year.

This article, in which CME and ICE asked the CFTC to regulate Hyperliquid and the platform rebutted the manipulation allegations, first appeared on 链新闻 ABMedia.