Trump personally stands for the offshore cryptocurrency derivatives platform Hyperliquid, publicly stating that the CFTC chairman is pushing for its "fully compliant" entry into the U.S., sending a strong signal that Washington will incorporate perpetual contract trading infrastructure into the regulatory system.

Written by: Zhao Ying, Wall Street Insight

Trump openly stands for the cryptocurrency derivatives platform Hyperliquid, sending a strong signal that the White House is promoting the return of offshore cryptocurrency trading infrastructure to the U.S.

According to Bloomberg's report on Thursday, Trump stated during a meeting with cryptocurrency and prediction market executives at the White House on August 19 that CFTC chairman Michael Selig is committed to bringing Hyperliquid into the U.S. market in a "fully compliant and legal manner." This is the clearest statement from the White House regarding the platform's compliance entry into the U.S. so far.

The statement quickly transmitted to the market, causing prices of the platform's native token HYPE to surge; shares of the listed company Hyperliquid Strategies Inc., which focuses on holding HYPE, saw a spike of 31% at one point during the trading session. The company is a digital asset reserve company, essentially serving as a publicly listed vehicle for accumulating cryptocurrencies, providing traditional stock investors with an indirect way to bet on Hyperliquid's growth. Traditional exchanges faced notable blows. Cboe Global Markets saw a maximum intraday decline of 6.1%, and CME Group's drop widened to 3.4%, both hitting their daily lows.

Hyperliquid currently operates outside the U.S. and does not open to American traders. Once compliance is established, U.S. users will have a legitimate channel to use the platform under the regulatory framework. Meanwhile, the CFTC has recently set conditions for regulated U.S. platforms to offer perpetual contract products, providing policy support for Hyperliquid's compliance path.

What is Hyperliquid: An Offshore New Star in the Perpetual Contract Space

Hyperliquid is a cryptocurrency trading platform known for its perpetual contracts. Perpetual contracts are leveraged contracts with no expiration date, allowing traders to speculate on cryptocurrency prices without holding the underlying asset. The platform operates on its namesake blockchain, co-founded by former Hudson River Trading trader Jeff Yan, with its main development company, Hyperliquid Labs, registered in Singapore.

Since the beginning of this year, Hyperliquid has quickly attracted Wall Street's attention due to strong demand for contracts linked to real-world assets like stocks and commodities, growing into the core venue for this trading category that has historically thrived mainly outside the U.S. due to regulatory restrictions.

Joshua Lim, co-head of global markets at FalconX, stated: "Hyperliquid has consistently been a benchmark for the 'fusion' concept – that traditional asset classes will realize 24/7 trading, margin management, and settlement on crypto infrastructure. It is exciting to see the government and regulatory bodies recognize it as a market structure innovator and open it to U.S. market participants."

Compliance Path Remains Uncertain

Despite clear political signals, there is still no clear answer on how Hyperliquid can legally offer perpetual contract products in the U.S. Compliance requirements may create tension with the platform's core characteristics of decentralization, and the challenge of retaining its original operating model within a regulatory framework is a real challenge faced by all parties.

Ayesha Kiani, Chief Operating Officer of Monarq Asset Management, pointed out: "Trump's statement on Hyperliquid and the immediate response of HYPE once again confirm how quickly the regulatory and political environments surrounding digital assets are changing. What’s noteworthy is not just the price volatility itself, but that decentralized market infrastructure is increasingly entering mainstream policy discussions."

Nonetheless, once the path to compliant entry into the U.S. is opened, Hyperliquid will have access to a larger customer base and capital pool, but it will also face a real test: whether a trading model forged outside traditional American rules can continue to operate within the regulatory framework.