trade.xyz Urges CFTC Path for 24/7 Energy Perpetuals
trade.xyz and HyperliquidPC have jointly submitted a comment letter to the US Commodity Futures Trading Commission (CFTC), calling for a regulated US market framework for energy perpetual contracts and 24/7 trading.
The firms argued that on-chain energy perpetuals can provide price discovery and hedging access when benchmark markets are closed. They cited a February 28 Middle East conflict that disrupted energy exports and a March 9 Brent crude price spike toward $120 per barrel. According to the letter, about two-thirds of the price movement between the Friday close and the following Sunday market reopening occurred on-chain through crude oil perpetuals.
trade.xyz said its WTI crude, Brent crude and Henry Hub natural gas markets on Hyperliquid have recorded more than $500 billion in cumulative volume since launching in October 2025. Its research found that weekend perpetual prices were closer to the benchmark’s Sunday reopening price than the Friday close in about 75% of sampled weekend closures. It also claimed no statistically significant deterioration in CME WTI reopening quality.
The proposal recommends asset-specific leverage limits, clearer funding-rate and liquidation disclosures, and permission for compliant venues to use blockchain infrastructure for execution, margin, clearing, settlement and recordkeeping. The CFTC is already seeking feedback on energy perpetual contract design, reference prices, market integrity, customer protection and continuous trading.
Neutral
The immediate market impact is likely neutral because the filing is a regulatory proposal rather than an approved product, rule change or capital-flow event. It does not directly alter leverage, liquidity or trading access for most crypto markets.
Short term, traders may view the letter as modestly positive for Hyperliquid and blockchain derivatives infrastructure. A regulated US route for energy perpetuals could strengthen institutional confidence in on-chain markets and support future demand for compliant derivatives. However, uncertainty over CFTC approval, contract design, leverage limits, funding disclosures and customer-protection rules could restrict adoption or delay implementation.
Long term, approval would be structurally bullish for regulated crypto derivatives and potentially for Hyperliquid’s ecosystem. Continuous trading could improve price discovery and hedging across weekends, similar to how round-the-clock crypto markets reacted faster than traditional venues during major macro or geopolitical shocks. The same feature also creates risks: excessive leverage, fragmented liquidity, oracle failures and rapid liquidation cascades could increase volatility. Historical launches of regulated crypto futures and perpetual products have generally expanded market access but also introduced sharper short-term positioning and basis-driven moves. Traders should therefore monitor CFTC consultation outcomes, institutional participation, open interest, funding rates and liquidation data rather than treat the filing as an immediate bullish catalyst.