Overview
- The Hyperliquid Policy Center and trade[XYZ] filed a joint comment letter on Aug. 18 asking the SEC and the CFTC to create a clear regulatory framework for pre‑IPO perpetual contracts, which they call IPOPs.
- IPOPs are cash‑settled derivatives that reference anticipated public listings, settle in USDC and do not deliver shares, ownership, voting rights or IPO allocations to holders.
- The letter sets out specific rules for product disclosure, listing eligibility, leverage and liquidation mechanics and market‑integrity safeguards, including audit trails and limits on deployer or affiliate trading.
- The groups cite five completed Hyperliquid IPOP markets, including SpaceX and Cerebras, and company data that show final pre‑IPO perpetual prices tracked opening share prices and generated meaningful volume and open interest.
- The filing proposes a phased approach that could eventually allow U.S. retail access but makes that access conditional on clarified product classification, stronger safeguards and coordinated SEC‑CFTC review.