FCA warns Hyperliquid on perps as ICE studies model after CFTC greenlights crypto perps
The UK Financial Conduct Authority (FCA) has warned that Hyperliquid and the Hyper Foundation may be offering or promoting financial services in the UK without authorization. The regulator told consumers to “avoid dealing” with the platform and cautioned that unapproved firms may not provide protections typical of regulated services.
This comes as regulators intensify scrutiny of crypto perps. ICE CEO Jeffrey Sprecher said ICE is studying Hyperliquid’s perpetual futures model and discussing with regulators why traditional venues may not offer comparable products.
In the US, the CFTC approved the first regulated crypto perpetual futures for US participants on May 29. Since then, Kalshi launched Bitcoin perpetual futures (and added Ethereum perpetual futures on June 4), while filings show 11 more perp contracts under review, including Solana- and Dogecoin-linked products. Coinbase Financial Markets also received guidance for eligible US institutions to access perpetuals and options via Deribit, and Kraken plans regulated Bitcoin perpetual futures via Bitnomial.
For traders, the immediate takeaway is headline risk: the UK FCA action could pressure Hyperliquid liquidity and sentiment for its crypto perps offering, even as larger venues push forward with more regulated perp structures. Separately, Hyperliquid reported about $255m revenue by May 20 and its HYPE token is up ~101% YTD, adding market sensitivity to any compliance-driven flow changes.
Bearish
FCA’s UK warning targets Hyperliquid’s ability to legally serve/market its crypto perps in the UK. Even if trading doesn’t stop immediately, the headline risk can reduce new inflows, tighten counterparties’ willingness to engage, and worsen perceived regulatory risk—typically negative for the platform’s liquidity and for the market’s willingness to hold the related HYPE exposure.
At the same time, US moves (CFTC approvals and new regulated perp listings by venues like Kalshi) are a broader positive for the category, but they are not a direct protection for Hyperliquid’s UK position. Net-net, this tilts toward a short-term bearish tone for Hyperliquid-linked sentiment.