Hyperliquid's native token, HYPE, is trading around $85.18 on Wednesday, holding above key support as the Commodity Futures Trading Commission (CFTC) approved perpetual futures tied to individual stocks for US exchanges. This regulatory milestone could reshape the landscape for perpetual derivatives in the United States, potentially benefiting platforms like Hyperliquid that are eyeing regulated market entry.
CFTC Approval Expands Perpetual Futures
The CFTC announced Tuesday that perpetual futures contracts on individual equities can now trade on registered contract markets that are also recognized by the Securities and Exchange Commission (SEC). These contracts, known as equity perpetuals, allow traders to speculate on stock price movements without traditional expiration dates, a feature that has made them popular in crypto and offshore markets.
CFTC Chairman Michael Selig stated that the products are approved as security futures under existing regulations, placing them under joint CFTC and SEC oversight. This classification distinguishes them from conventional commodity futures and reflects the agencies' push to foster innovation while maintaining investor protections. Selig noted that the move could reduce American investors' reliance on offshore platforms for similar products, following the earlier approval of Bitcoin perpetual futures on a regulated domestic exchange.
Legal Challenge and Market Uncertainty
Despite the regulatory breakthrough, the approval faces immediate legal opposition. 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 CFTC's decision. Cboe Global Markets, Citadel Securities, and the Healthy Markets Association joined the challenge, arguing that single-stock perpetual derivatives should be classified as security-based swaps rather than security futures. This dispute introduces uncertainty about the future of equity perpetuals in the US market.
Hyperliquid's US Expansion Plans
The CFTC's decision comes at a pivotal time for Hyperliquid, which has been exploring entry into the US market. Last week, Intercontinental Exchange (ICE) 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 platform would offer retail traders access to perpetual contracts on equities, commodities, currencies, and cryptocurrencies, leveraging ICE's regulated infrastructure.
Technical Analysis: HYPE Holds Key Support
On the daily chart, HYPE has surged above its 50-day exponential moving average (EMA) at $82.64 and its 20-day EMA at $83.40, forming an immediate resistance zone. The token continues to trade above its 100-day EMA at $78.08, suggesting the broader trend remains intact. The Relative Strength Index (RSI) stands at 49, indicating slightly bearish momentum but not extreme selling pressure.
The immediate downside focus is the support area between $78.42 and $78.08, where the horizontal level aligns with the 100-day EMA, creating a potential buying zone. A successful defense of this area could allow HYPE to consolidate before attempting another move higher. However, a decisive daily close below $78.08 would weaken the technical structure, with the next support at $75.69, followed by $67.63 and $61.16.
On the upside, buyers need to close above the horizontal resistance at $85.04, with a descending trendline near $87.68 as the next hurdle. A breakout above $87.68 would improve the bullish outlook, potentially targeting $97.84.
This article is for informational purposes only and does not constitute financial advice.
