{"id":72603,"date":"2026-05-16T13:35:41","date_gmt":"2026-05-16T13:35:41","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/arthur-hayes-tells-cme-and-ice-off-as-hype-drops-nearly-9-after-lobbying-push\/"},"modified":"2026-05-16T13:35:41","modified_gmt":"2026-05-16T13:35:41","slug":"arthur-hayes-tells-cme-and-ice-off-as-hype-drops-nearly-9-after-lobbying-push","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/arthur-hayes-tells-cme-and-ice-off-as-hype-drops-nearly-9-after-lobbying-push\/","title":{"rendered":"Arthur Hayes Tells CME and ICE Off as HYPE Drops Nearly 9% After Lobbying Push"},"content":{"rendered":"<p><b>(Originally posted on : Bitcoin News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"@container mb-[25px] rounded-sm overflow-clip py-0.5 pr-0.5 pl-2.5 bg-success-100\">\n<div class=\"flex flex-col gap-m overflow-clip rounded-[6px] !bg-success-10 p-3 @[420px]:p-m\">\n<h2 class=\"m-0 flex items-center gap-s text-[19px] !text-[#1c1c1c] md:text-[20px]\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"10\" viewbox=\"0 0 16 10\" fill=\"none\" class=\"shrink-0 text-success-100\" aria-hidden=\"true\"><path d=\"M1 1.5h14\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><path d=\"M1 8.5h10\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><\/svg><span>Key Takeaways<\/span><\/h2>\n<ul class=\"m-0 flex list-none flex-col gap-m pl-0\">\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">CME and ICE lobbied the CFTC to force federal oversight on Hyperliquid\u2019s 24\/7 onchain oil futures.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Following the news, Hyperliquid\u2019s HYPE token slid nearly 9% to $41.49 by May 16.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Hyperliquid must now face potential CFTC mandates to enforce strict KYC and trade surveillance.<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<h2>Legacy Exchanges Raise National Security Alarms<\/h2>\n<p>In what is shaping up to be a clash between traditional finance (TradFi) and <span>decentralized finance<\/span> ( <span>DeFi<\/span>), CME Group and Intercontinental Exchange Inc. (ICE) are lobbying U.S. authorities to clamp down on Hyperliquid. According to a Bloomberg <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2026-05-15\/cme-ice-push-us-to-curb-crypto-s-offshore-oil-trading-upstart?embedded-checkout=true\" target=\"_blank\" rel=\"noopener noreferrer\">report<\/a>, they want to force federal oversight onto the decentralized derivatives exchange, which has gained traction by offering 24\/7 onchain perpetual futures tied to commodities, including crude oil.<\/p>\n<p>CME and ICE, which dominate global derivatives trading and handle trillions of dollars in notional value annually, argue that Hyperliquid operates a highly unregulated, largely offshore trading environment. They add that the platform\u2019s anonymous architecture poses severe risks of market manipulation, wash trading and spoofing.<\/p>\n<p>The two exchange operators also raised alarms over national security and global price integrity. As Middle East tensions push oil prices past $100 a barrel, CME and ICE claim that an opaque, 24\/7 venue allowing users to speculate heavily on Brent and WTI crude oil could distort traditional price discovery. Furthermore, they warned Washington that anonymous platforms provide a loophole for sanctioned entities or state-backed actors to influence critical energy benchmarks outside the U.S. regulatory perimeter.<\/p>\n<p>By registering with the Commodity Futures Trading Commission (CFTC) as a swap execution facility or contract market, Hyperliquid would be compelled to enforce strict know-your-customer (KYC) identification programs and implement trade surveillance. Interestingly, CME Group is moving forward with plans to expand its own <span>crypto<\/span> offerings, including <span>bitcoin<\/span> <span>volatility<\/span> futures and <a href=\"https:\/\/news.bitcoin.com\/cme-launching-nasdaq-crypto-index-futures-led-by-btc-eth-xrp\/\">Nasdaq CME Crypto Index Futures<\/a>. Hyperliquid\u2019s trading model, however, gives it a distinct edge, allowing retail and institutional capital to <a href=\"https:\/\/news.bitcoin.com\/hyperliquid-us-oil-perps-skyrocket-after-jd-vance-fails-to-reach-iran-nuclear-deal-in-islamabad\/\">trade macro events over weekends<\/a> when traditional markets are closed.<\/p>\n<h2> <span>Crypto<\/span> Community Fire Back<\/h2>\n<p>The report, meanwhile, triggered a swift response from the <a href=\"http:\/\/www.bitcoin.com\/get-started\/a-quick-introduction-to-crypto\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">crypto<\/a> community, which viewed the move as an anti-competitive defensive maneuver by entrenched monopolies. The Hyperliquid Policy Center <a href=\"https:\/\/x.com\/HyperliquidPC\/status\/2055306265589354823\" target=\"_blank\" rel=\"noopener noreferrer\">pushed<\/a> back against the allegations, arguing that legacy exchange operators function fundamentally differently from decentralized onchain order books.<\/p>\n<p>Supporters of the protocol emphasized that because Hyperliquid operates entirely on a public <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-is-a-blockchain\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">blockchain<\/a>, every transaction record is fully transparent\u2014making traditional concerns about hidden manipulation and opaque insider trading obsolete. BitMEX co-founder Arthur Hayes immediately took to X, <a href=\"https:\/\/x.com\/CryptoHayes\/status\/2055325600290664912\" target=\"_blank\" rel=\"noopener noreferrer\">telling<\/a> CME and ICE to go \u201cf\u2014 themselves. Long live HYPE.\u201d<\/p>\n<p>In past commentary regarding macro-driven spikes in oil <a href=\"http:\/\/www.bitcoin.com\/get-started\/what-is-trading-volume\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">volume<\/a>, Hayes noted that platforms like Hyperliquid represent a financial evolution. <a href=\"http:\/\/www.bitcoin.com\/get-started\/a-quick-introduction-to-crypto\/\" class=\"lar_link lar_link_outgoing\" target=\"_blank\" rel=\"noopener noreferrer\">Crypto<\/a> advocates rallied behind his sentiment, arguing that the true manipulation of oil prices during geopolitical conflicts happens behind the closed doors of traditional venues, not on public, transparent ledgers.<\/p>\n<p>Other industry commentators echoed the view that TradFi is increasingly \u201cusing regulation as a weapon\u201d to stifle innovation. They drew parallels to earlier attempts by global stock exchanges to restrict tokenized equities, noting that the pattern of incumbents trying to legislate away decentralized competitors is accelerating.<\/p>\n<p>Following the report, Hyperliquid\u2019s token, HYPE, which had jumped 17% on news of a collaboration between Coinbase and Circle, slid from around $46 to a low of $41.49 by May 16 at 3:05 a.m. EDT. The nearly 9% drop dragged HYPE\u2019s market capitalization from just below $11 billion to $9.9 billion.<\/p>\n<\/p><\/div>\n<p><a href=\"https:\/\/news.bitcoin.com\/arthur-hayes-tells-cme-and-ice-off-as-hype-drops-nearly-9-after-lobbying-push\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : Bitcoin News ) Key Takeaways CME and ICE lobbied the CFTC to force federal oversight on Hyperliquid\u2019s 24\/7 onchain oil futures. Following the news, Hyperliquid\u2019s HYPE token slid nearly 9% to $41.49 by May 16. Hyperliquid must now face potential CFTC mandates to enforce strict KYC and trade surveillance. Legacy Exchanges [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":72604,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[32],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/72603"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=72603"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/72603\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/72604"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=72603"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=72603"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=72603"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}