Cumberland’s warning to Hyperliquid perp traders: ‘The world will track your positions’

Crypto market maker Cumberland is cautious about ICE-backed plans to bring Hyperliquid perpetual Futures (perps) trading to the U.S. According to Don Wilson, co-founder and CEO of Cumberland, Hyperliquid’s underlying tech has some features that may conflict with CFTC market rules. He posed 4 issues and wondered whether they align with CFTC core principles. First, Wilson does not see the benefit of on-chain trading of perps if the same can be offered via a centralized exchange such as Coinbase. Perps allow users to get leveraged exposure to assets with no expiries and no need to hold underlying spot assets. Coinbase, Kalshi, and other platforms are already regulated to offer them. Secondly, CFTC-regulated entities are partially hidden, and traders don’t know the identities of those they’re trading against.

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