CME and ICE Urge U.S. Regulators to Probe Hyperliquid Manipulation Risks

Hyperliquid is a decentralized exchange focused on on-chain perpetual contracts and allows users to trade without know-your-customer checks, giving it an advantage that regulated centralized platforms struggle to replicate. The issue carries particular weight because Binance reached a settlement of more than $4.3 billion with the U.S. government in November 2023 over anti-money-laundering and sanctions violations. CZ pleaded guilty and served four months in prison, giving him firsthand experience of compliance risks.

Galaxy Research head Alex Thorn posted a 38-second clip from a Galaxy Brains interview on X on June 16, 2026. CZ called Hyperliquid an “awesome invention” and said Binance could not compete with its no-KYC niche. He added that he would never take the same approach and joked that its team should have good lawyers. HYPE briefly reached a record high of $76.70 that day.

On March 16, 2026, the U.S. Commodity Futures Trading Commission issued an advance notice of proposed rulemaking on prediction markets, RIN 3038-AF65, seeking input on market oversight and the public-interest boundaries governing event contracts. The Hyperliquid Policy Center was concerned that rules based on assumptions about centralized exchanges could leave non-custodial onchain markets without a lawful path to operate.

On April 30, 2026, the consultation deadline, HPC submitted a 15-page comment letter, CFTC No. 115408. It called for flexible, function-based rules, a clear legal pathway for U.S. users to participate in decentralized prediction markets and support for U.S. onchain financial innovation. The letter did not discuss any investment amount; its policy objective was to provide regulatory certainty for Hyperliquid and HIP-4 outcome markets.