Wall Street Energy Exchanges Urge U.S. Crackdown on Hyperliquid

Wall Street energy exchanges CME and ICE are pushing U.S. regulators to clamp down on Hyperliquid, citing concerns over market manipulation and sanctions risk. The exchanges want the platform to register with the Commodity Futures Trading Commission (CFTC), which would mandate stricter customer identity checks and trade surveillance systems.

Hyperliquid, though branded as decentralized, operates with a centralized control structure. Its HyperEVM runs on just 31 validators, a small fraction compared to larger open networks. More critically, user deposits are secured by a 3-of-4 multisig wallet, creating a single point of failure—and a potential enforcement lever for regulators.

The CFTC could argue Hyperliquid serves U.S. markets despite its claims to the contrary. Weak IP blocking and substantial trading volume further undermine its decentralized facade. Crypto Twitter erupted over the selective scrutiny, with on-chain investigator ZachXBT noting, "Interesting how NYSE only has issue with HL but not Polymarket."