HYPE Token Jumps 15% as Hyperliquid Pushes DeFi Approach to U.S. Regulators

Hyperliquid’s $HYPE token climbed over 15% in the last 24 hours, hitting a record price above $35. The surge followed Hyperliquid Labs’ announcement that it had submitted two detailed comment letters to the U.S. Commodity Futures Trading Commission (CFTC). These letters address the agency’s plans for new regulations covering perpetual derivatives and continuous, round-the-clock crypto trading.

In their communications with the CFTC, Hyperliquid Labs proposed using decentralized finance (DeFi) as a basis for future regulations. The team explained that DeFi methods can help financial services reach the same efficiency and user safety levels found in traditional financial markets. Hyperliquid’s submission arrives when U.S. regulators seek input on how to govern derivatives products that operate around the clock.

The CFTC has requested comments from the public on perpetual crypto trading. Hyperliquid Labs responded by presenting its protocol as a case study in how decentralized exchanges can meet, and even surpass, traditional benchmarks for security and transparency. The project runs on a high-performance blockchain and supports permissionless, 24/7 trading.

$HYPE Open Interest Surpasses $9 Billion as Institutional Attention Grows

Hyperliquid’s DeFi protocol has drawn interest from major crypto investors and traders. On-chain open interest in Hyperliquid perpetuals surpassed $9 billion for the first time this week. Famous whales like “James Wynn” and large-scale traders have placed billion-dollar positions on the platform. As a result of their activity, the spotlight has intensified on both the protocol and its native token.

Hyperliquid’s regulatory involvement occurs during a rise in trading volumes. The protocol relies on pre-funded collateral and does not use traditional banking systems. Its automated liquidation system allows margin requirements to be changed in real time to address a number of the CFTC’s risk management concerns. Focusing on these operational advantages, Hyperliquid Labs aims to prove that DeFi platforms can provide credible consumer protection.

While making its submission, Hyperliquid argued that a principles-based regulation process should be implemented. Rather than assigning strict categories that could hinder innovation, focusing on risk profiles and actual consumer outcomes would benefit both market stability and growth.

Industry Leaders Endorse $HYPE Amid Record Price Rally

The $HYPE token’s rally has also received support from high-profile industry figures. Arthur Hayes, the former CEO of BitMEX, disclosed a significant purchase of $HYPE tokens at $14.60 and later called the project “Beast Mode” on social media. Hayes has predicted that $HYPE could reach $100 soon. He described the protocol as a showcase for DeFi’s technical advantages.

The strong institutional and social backing arrives as $HYPE hits a new all-time high of $37.34, with growing optimism around Hyperliquid’s regulatory approach. According to on–chain data, traders are placing long and short bets, and recent liquidations underscore the volatility and volume of the platform.