Hyperliquid holds $78 support as CFTC approves US equity perpetual futures

The Commodity Futures Trading Commission (CFTC) has opened the door for perpetual contracts linked to individual stocks to trade on qualifying US exchanges, potentially creating new opportunities for platforms seeking to expand perpetual derivatives trading within regulated markets.

The decision comes as Hyperliquid explores opportunities to enter the US through a proposed market structure involving Intercontinental Exchange (ICE) and Trade[XYZ].

However, the regulatory breakthrough has already sparked a legal challenge from major financial market participants, introducing uncertainty around the future of equity perpetual futures.

CFTC clears path for equity perpetual futures in US

The CFTC announced Tuesday that perpetual futures contracts tied to individual equity securities can begin trading on registered contract markets that are also recognized by the Securities and Exchange Commission (SEC).

The contracts, commonly referred to as equity perpetuals, allow traders to gain exposure to the price movements of individual stocks without the traditional expiration dates associated with standard futures contracts.

CFTC Chairman Michael Selig said the products have been deemed approved as security futures under the existing regulatory framework.

This classification places equity perpetuals under joint oversight from the CFTC and SEC, rather than treating them exclusively as conventional commodity futures.

According to Selig, the decision reflects the agencies' efforts to support financial innovation while maintaining investor protections and market integrity.

He also described the development as another step toward bringing perpetual derivatives trading into regulated US markets.

The CFTC previously allowed Bitcoin perpetual futures to trade on a regulated domestic exchange, establishing an earlier pathway for these products.

The latest decision extends that approach to contracts linked to individual stocks. Selig argued that allowing perpetual futures within the US regulatory system could reduce the need for American investors to access similar products through offshore trading platforms.

The announcement follows months of debate over cryptocurrency and derivatives market regulation.

Despite the CFTC's announcement, the regulatory status of equity perpetual futures remains contested.

The Capital Markets Alliance filed a lawsuit in the US District Court for the Southern District of New York on Tuesday, seeking to overturn the agency's approval.

Cboe Global Markets joined the legal challenge alongside Citadel Securities and the Healthy Markets Association.

The plaintiffs argue that single-stock perpetual derivatives should be classified as security-based swaps rather than security futures.

Hyperliquid eyes US expansion through ICE and Trade[XYZ]

The CFTC's decision arrives at an important time for Hyperliquid, which has been exploring ways to expand its perpetual futures ecosystem into the United States.

Last week, Intercontinental Exchange and Trade[XYZ] announced an agreement to establish a dedicated US trading and clearing structure built around Hyperliquid technology.

Under the proposed arrangement, ICE would exclusively operate the regulated markets and make a strategic investment in Trade[XYZ].

The planned platform would provide retail traders with access to perpetual contracts linked to equities, commodities, currencies, and cryptocurrencies.

The arrangement could provide Hyperliquid's ecosystem with a pathway into one of the world's largest financial markets while leveraging ICE's experience operating regulated trading infrastructure.

$HYPE surges above key moving averages

$HYPE trades above $85 on Wednesday, maintaining a cautious technical outlook as sellers defend resistance levels above the current price.

On the daily chart, the token has surged above its 50-day Exponential Moving Average (EMA) at $82.64 and its 20-day EMA at $83.40.

These moving averages form an immediate resistance zone that buyers must overcome to strengthen the short-term recovery outlook.

$HYPE continues to trade above its 100-day EMA at $78.08, suggesting that the broader trend has not yet experienced a decisive breakdown.

The Relative Strength Index (RSI) stands at 49, slightly below the neutral level of 50. This indicates that bearish momentum has a modest advantage, although selling pressure is not particularly extreme.

The immediate downside focus for Hyperliquid is the support area between $78.42 and $78.08. The $78.42 horizontal level sits close to the 100-day EMA at $78.08, creating a technical support zone that could attract buying interest.

A successful defense of this area may allow $HYPE to consolidate before attempting another move higher.

However, a decisive daily close below $78.08 would weaken the broader technical structure and increase the risk of further losses.

In that scenario, the next significant support lies at $75.69. If selling pressure intensifies, $HYPE could extend its decline toward $67.63, followed by the lower support level at $61.16.

On the upside, buyers must close the daily candle above the horizontal resistance at $85.04. Beyond that, the descending trendline near $87.68 represents another important hurdle.

A convincing breakout above $87.68 would improve the bullish outlook and potentially bring the higher resistance at $97.84 into focus.