Hyperliquid Labs is negotiating a path into the U.S. derivatives market through Kraken's parent company, Payward, using Payward's subsidiary Bitnomial as the regulated on-ramp. Payward has already pitched the CFTC on the plan, but former SEC senior counsel Ashley Ebersole says the wider regulatory build could take 10 to 12 months even in a best case.
Hyperliquid Labs could be nearing a breakthrough on U.S. market entry through a partnership with Kraken's parent, Payward, Bloomberg reported Monday. Under the proposed arrangement, Payward subsidiary Bitnomial would offer registered U.S. users access to a selection of crypto perpetual futures tied to markets on Hyperliquid's decentralized exchange and its underlying Layer 1 blockchain.
Payward pitches the CFTC
Payward has presented the Commodity Futures Trading Commission with an outline of the proposed structure, though final regulatory approval is still pending. Kraken did not immediately respond to a request for comment.
The company acquired Bitnomial earlier this year for up to $550 million, giving it a CFTC-licensed U.S. derivatives stack spanning exchange, clearing and brokerage operations.
A 10-to-12-month runway, at best
Both the SEC and the CFTC may need to write revised interpretive rules on custody and routing mechanics before Hyperliquid can operate onshore, Ebersole told The Block. Even then, the process could take at least 10 to 12 months, assuming regulators moved quickly.
The CFTC would likely oversee most crypto perpetuals, while contracts tied to securities could fall under the SEC's jurisdiction instead, according to Ebersole, now co-founder and chief legal officer at real-world-assets platform tx. According to crypto.news, Ebersole said "Whatever pathway regulators create for Hyperliquid cannot realistically be Hyperliquid-specific,". Any resulting framework would extend beyond one company: Coinbase, Kraken and other registered platforms could seek the same route.
Political momentum builds
President Trump said on Aug. 19 that CFTC Chair Michael Selig was working to bring Hyperliquid into the U.S. through fully compliant, legal channels. The remark came as the administration pressed Congress to advance the Digital Asset Market Clarity Act, which would draw clearer lines between SEC and CFTC oversight of digital assets.
The week before, the Hyperliquid Policy Center had urged the SEC and CFTC to harmonize their treatment of perpetual contracts, arguing clearer rules would pull more trading volume onshore. In May, the CFTC took its first step by greenlighting KalshiEX and Coinbase to list crypto perpetual futures, then in June released a request for comment on crude oil perpetual contracts and 24/7 trading.
Hyperliquid's HYPE token was trading up 1.3% over the past 24 hours to $84.25, after touching an all-time high just above $86 last week. It has gained over 85% over the past year, one of the best runs in crypto.
Sources: The Block, crypto.news
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