Hyperliquid Policy Center and tradeXYZ jointly promote the CFTC to develop a U.S. oil sustainability

Several agencies have called on U.S. regulators to open paths for energy sustainability contracts

Several agencies hope that regulators will open up channels for all-weather energy derivatives trading on U.S. trading platforms. The Hyperliquid Policy Center and trading platform tradeXYZ have jointly formally urged the U.S. Commodity Futures Trading Commission (CFTC) to provide a regulatory path for the implementation of energy sustainability contracts in the United States. At the core of this request is the crude oil perpetual contract-a derivative structure that has long been popular on overseas crypto exchanges but is largely absent from the regulated domestic market in the United States.

Perpetual contracts, unlike standard futures, have no expiration date. Traders can hold positions indefinitely, and long and short positions exchange capital rates regularly to keep prices linked to the underlying asset. In the past few years, this structure has become the dominant form of trading in the cryptocurrency derivatives market.

Applying this model to crude oil and other energy commodities would mark a major shift in the structure of the U.S. market. Traditional crude oil futures are traded on a fixed schedule through institutions such as the Chicago Mercantile Exchange (CME), with contracts expiring on specific dates. The perpetual format will allow exposure linked to crude oil to be traded continuously, around the clock, which is currently not available on regulated platforms in the United States.

The move comes as the CFTC continues to explore ways to classify and regulate sustainable products more broadly. Crypto perpetual contracts are still in a gray area in the U.S. regulatory system. Most of the trading volume occurs on overseas platforms, and U.S. traders can only access them through alternative methods. Integrating energy sustainability contracts into the domestic regulatory framework requires the agency to clarify rules for margin, custody and market monitoring.

Hyperliquid, a decentralized derivatives exchange related to the Hyperliquid Policy Center, focuses its business on perpetual futures trading, especially crypto assets. Expanding this model to physical commodities such as crude oil will significantly broaden the platform's ambitions beyond the digital asset space. Another participant, tradeXYZ, teamed up with Hyperliquid in this specific regulatory action.

The timing reflects a broader trend: crypto-related companies are seeking to engage more closely with U.S. regulators rather than just operating overseas. Industry participants increasingly believe that clear federal rules-rather than ambiguous areas-better protect traders and encourage growth in compliant markets. Energy sustainability contracts will test whether this argument can extend from crypto assets to traditional commodity markets.

It is unclear how the CFTC will respond to the request and what timetable any rulemaking process may follow. Such large-scale structural changes in commodity markets usually involve long consultation periods, industry consultation, and careful assessment of systemic risks. The agency has not said when it may issue formal guidance on the proposal.

Market Impact

If the CFTC finally opens the way for energy perpetual contracts, it could reshape the way U.S. traders gain exposure to crude oil prices and introduce a continuous trading tool that can replace fixed-maturity futures contracts. At the same time, it will also verify the applicability of perpetual contract structures in the field of physical goods other than crypto assets, potentially attracting proposals for similar products such as natural gas, metals or agricultural products.

At present, this is only a regulatory request, not an approved product, so there is no crude oil perpetual contract market in the United States that is traded under CFTC supervision. Energy traders and existing futures exchanges will pay close attention as the new sustainability framework may affect the liquidity landscape and competitive dynamics of mature commodity derivatives markets.

The proposal demonstrates the continued interest of crypto-native companies in extending perpetual contract trading to traditional commodity markets, although any regulatory changes remain to be reviewed by the CFTC.

FAQs

What is an energy sustainability contract?
An energy perpetual contract is a perpetual futures contract linked to commodities such as crude oil. It allows continuous trading and has no fixed maturity date, unlike standard futures.

Who is asking the CFTC to take action?
The Hyperliquid Policy Center and trading platform tradeXYZ jointly urged the U.S. Commodity Futures Trading Commission to establish a regulatory path for these contracts.

Are crude oil perpetual contracts currently available on regulated exchanges in the United States?
No. The U.S. crude oil market currently trades through traditional futures contracts with fixed maturity dates, and perpetual crude oil contracts have not yet been regulated domestically.

Does the CFTC respond to this request?
According to reports, the CFTC has not yet issued formal guidance or a timetable for reviewing the proposal.