HYPE token set a record following historic CFTC approval

A historic breakthrough for crypto derivatives in the U.S.

On May 29, 2026, the U.S. Commodity Futures Trading Commission (CFTC) took a step the industry has long been waiting for: approving KalshiEX's BTCPERP contract, described as the very first Bitcoin perpetual futures contract permitted to operate within an official U.S. regulatory framework. The contract is cash-settled against CF Benchmarks' Bitcoin Real Time Index (BRTI) and is available for around-the-clock trading, according to Yahoo Finance.

At the same time, the CFTC's market participants division issued a so-called "no-action letter" to Coinbase Financial Markets. This allows Coinbase, as a registered Futures Commission Merchant, to connect American customers to global crypto derivatives — including perpetuals through its subsidiary Deribit. In practice, this opens a regulated channel to a market that was previously inaccessible to U.S. institutional and retail investors.

"This charts a path for one of the most liquid segments of the crypto asset markets to exist within the U.S. regulatory framework" — CFTC Chair Mike Selig

HYPE token reaches new heights

The news was immediately priced into the market. The HYPE token of Hyperliquid — the platform that describes itself as the largest decentralized exchange for perpetual futures — surged to a new all-time high in the wake of the announcement. This occurred despite a broadly risk-challenged crypto climate, with the Fear & Greed Index sitting at 29 out of 100 on Monday and Bitcoin trading around $73,400.

The paradox is striking: a regulatory decision that could ultimately challenge Hyperliquid's market position was initially interpreted as positive validation of the entire perpetuals segment.

What are perpetual futures?

Increased competition for decentralized platforms

Although the Hyperliquid token rose in the short term, analysts point out that the CFTC's entry into the space could fragment liquidity over time. By offering regulated onshore alternatives, authorities are creating direct competitors to the offshore and DeFi platforms that have dominated the market until now.

Coinbase CEO Brian Armstrong stated, according to research materials, that American users had previously been shut out of roughly 80 percent of the global crypto market — a situation that is now changing.

Hyperliquid itself has argued that the regulatory framework should encompass not only centralized intermediaries, but also the "onchain protocols where the most significant activity actually takes place." The CFTC, for its part, has signaled that future product approvals will proceed on a case-by-case basis, with requirements for risk controls and market surveillance.

Prior enforcement actions as backdrop

This is not the first time the CFTC has turned its attention to DeFi perpetuals. The agency has previously taken legal action against platforms Deridex and Opyn for offering unregistered swaps to U.S. users without the required KYC procedures. The CFTC's position has consistently been that "a swap is a swap, regardless of what it is called" — and that decentralization does not exempt a platform from regulatory obligations.

Consumer advocacy group Better Markets is nonetheless critical of the new direction, claiming that the CFTC has overlooked investor risk and acted in the industry's interest rather than consumers'. These claims have not been independently verified by 24markets.

What happens next?

The CFTC has signaled that new product applications will undergo thorough review under Regulation 40.3. For players like Hyperliquid, the critical question will be whether they can — or wish to — adapt to a regulated framework, or whether they will continue operating in a legal gray zone that is now narrowing. The market is watching closely to see whether other decentralized protocols will follow suit and seek regulatory recognition.