Hyperliquid Urges CFTC to Embrace Onchain Perpetual Trading

Hyperliquid Labs has submitted dual comment letters to the CFTC, urging the agency to embrace decentralized, 24/7 trading and onchain perpetual derivatives. “Continuous, on-chain markets like Hyperliquid already meet, and in several respects exceed, the Commission’s policy objectives for resilience and customer protection,” the firm wrote.

The protocol cited its self-custodied collateral, automated liquidations, and validator-run infrastructure as proof that DeFi beats traditional risk frameworks. Hyperliquid claims its oracle pricing, <1s finality, and continuous margin checks eliminate weekend gaps and human error while giving regulators real-time visibility.

The letters arrive just as the CFTC signals it may soon approve crypto perpetuals for U.S. markets, with outgoing Commissioner Summer Mersinger saying, “I believe we’ll have some of those products trading live very soon.” Her departure, along with three others, leaves only Trump appointee Brian Quintenz pending confirmation and threatens to stall enforcement.

Despite internal disarray, Hyperliquid argues now is the time for principles-based rules that reward transparency and on-chain auditability. “Rigid classification,” the team warned, “could cause regulatory confusion and hamper innovation without enhancing market development or safety.”

Big U.S. Banks Explore Joint Stablecoin Launch

Top U.S. banks including JPMorgan, Citi, and Bank of America are reportedly in early talks to jointly launch a stablecoin, the Wall Street Journal reported on May 23. The aim is to improve settlement speed, compete with crypto-native firms, and address growing demand for digital payments. Payments arms like Zelle and The Clearing House are also involved in the discussions, which may extend to smaller regional banks.

The proposal gained traction as the Senate advanced the GENIUS Act, which outlines a formal regulatory framework for payment stablecoins. Crypto firms have already begun pursuing bank charters, heightening pressure on traditional institutions. Some European banks have made moves too, with Société Générale launching EURCV and now eyeing a U.S. dollar-backed token.

Polygon Co-Founder Mihailo Bjelic Steps Down

Polygon co-founder Mihailo Bjelic announced on May 23 that he’s stepping away from his role at Polygon Labs and resigning from the foundation board. Citing diverging visions, Bjelic said on X that he can no longer contribute effectively to the project but will continue supporting it from the sidelines. His departure marks the third founder exit, following Jaynti Kanani and Anurag Arjun.

Bjelic played a key role in the development of Polygon’s Ethereum scaling efforts and helped lead the recent POL token migration. Fellow co-founder Sandeep Nailwal called him “a brother” and praised his impact on governance and strategy. POL dropped roughly 3.7% following the announcement, trading at $0.24 as of Friday afternoon.

Images Show What Trump's Memecoin Dinner Looked Like

Photos surfaced from Donald Trump’s private dinner for top TRUMP token holders, held at his Virginia golf club on May 22. Attendees enjoyed a three-course meal, received Trump-themed gift bags, and posed with signage reading “Fight Fight Fight.” Tron founder Justin Sun and Magic Eden CEO Jack Lu were present, though the White House declined to share an official guest list.

Sun, who faces past SEC charges, was brought on stage and gifted a $100,000 Trump-branded gold watch at the event. Protesters gathered outside with signs reading “Crypto Grift Dinner” and “Democracy Is Not For Sale,” calling for financial ethics reform. Trump-linked entities have reportedly earned over $100 million from TRUMP token trading since the start of his 2025 campaign.

Data of the Day

Bitcoin futures open interest surged to a record $80 billion on May 23, rising 30% since the beginning of the month, per CoinGlass data. Traders have taken on massive leveraged positions anticipating a breakout above $111,000, despite increased market volatility. Analysts say the inflows into U.S. spot Bitcoin ETFs, now over $2.5 billion, may help offset downside risks.

Crypto options platforms reflect similar speculation, with $1.5 billion in open interest clustered at key strike levels above $110,000. Deribit data shows $2.76 billion in contracts expiring Friday, with a put/call ratio favoring short positions. The “max pain” point is $103,000, where most losses would be realized, suggesting a volatile expiration cycle ahead.

More Breaking News

• A U.S. judge tossed key fraud charges against Mango Markets exploiter Avraham Eisenberg, ruling New York prosecutors had no jurisdiction.
• Michael Saylor hinted at buying the dip after Bitcoin slipped below $112K, with Strategy already holding over 576,000 BTC in reserve.
• A Manhattan investor has been charged with kidnapping and torturing an Italian man in Soho in a violent attempt to extract Bitcoin passwords.
• Kalshi added Solana to its crypto deposit options, offering faster funding and up to $500,000 in deposit limits through Zero Hash integration.
• A Massachusetts man who ran a “no questions asked” Bitcoin-for-cash service has been sentenced to six years in prison and fined $1.5 million.
• World Liberty Financial denied claims Binance’s CZ acted as a foreign fixer, calling the WSJ report a baseless attempt to discredit the firm.
• US spot Bitcoin ETFs saw their highest level of trading volume so far in 2025, as BTC renewed its all-time high price.

For the latest updates on digital asset markets, follow us on X @Datawalletcom.