Trump Signals Push to Bring Offshore Crypto Derivatives Platform Onshore
Former President Donald Trump announced that the Commodity Futures Trading Commission (CFTC) is actively working to bring the popular offshore cryptocurrency derivatives platform Hyperliquid into the United States. The statement, made during a meeting at the White House with executives from major financial and crypto firms, sent ripples through the market.
Trump indicated that CFTC Chair Michael Selig is spearheading efforts to establish Hyperliquid’s presence in the U.S. in a “fully compliant and legal fashion.” He expressed a desire to see this development, stating, “We would really like to see it.”
The news had an immediate impact on cryptocurrency prices. Hyperliquid’s native token, HYPE, surged 23% to a peak of $72. Another derivatives platform leader, LIT, saw a 20% increase, reaching a new local high. The broader crypto market also experienced gains, with Bitcoin climbing to $72,000, Ethereum rising by 20% to over $2,300, and Solana reaching $87. Stocks of publicly traded crypto-related companies also saw significant boosts, with Coinbase and Circle each jumping 17%, and Robinhood stock gaining 10%.
Hyperliquid is an offshore platform that allows traders to engage in leveraged bets using perpetual futures – contracts without an expiration date – by simply connecting a cryptocurrency wallet, bypassing the need for a traditional brokerage account. U.S. residents are currently prohibited from legally accessing the platform. This operational model circumvents the intermediary typically assumed by U.S. derivatives regulations, which has historically led to offshore operations for many crypto platforms due to registration, customer protection, and market oversight requirements. The CFTC has been laying groundwork for such a move, having previously cleared Coinbase Derivatives for perp-style Bitcoin and Ethereum futures slated for April 2025, and approving Kalshi for a similar product.
The meeting also touched upon broader legislative efforts. Trump urged Congress to pass a revised version of the Clarity Act, a market structure bill designed to delineate authority over digital assets between the Securities and Exchange Commission (SEC) and the CFTC. He framed this legislation as crucial for maintaining a competitive edge against China. The bill is scheduled for a return to the Senate floor in September, following the lawmakers’ recess. However, it still requires approximately six Democratic votes to overcome a potential filibuster and reach the 60-vote threshold needed for passage.
The current landscape suggests a divergence in regulatory approaches. While the SEC recently proposed its first formal cryptocurrency rules, President Trump’s public directive to the CFTC to find a pathway for a major offshore derivatives venue highlights a distinct regulatory push. With the Clarity Act facing legislative hurdles, the SEC and CFTC appear to be proceeding with rule-making, potentially exerting pressure on Congress to either act on legislation or allow the agencies to establish their own regulatory frameworks for digital assets.
Attention now turns to the CFTC’s Innovation Advisory Committee, which is set to convene for its inaugural meeting on Thursday.
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