Hyperliquid Policy Center Proposes Regulatory Framework Updates for MiCA

On September 30, 2026, the Hyperliquid Policy Center (HPC) submitted formal feedback to the European Commission regarding the ongoing Markets in Crypto-Assets (MiCA) Regulation targeted consultation. The submission focuses on the critical distinction between various digital assets and their appropriate regulatory silos, arguing that the underlying distributed ledger technology should not be the primary factor in determining legal classification.

Economic Characteristics as a Regulatory Benchmark

The HPC advocates for a "substance over form" approach, suggesting that European regulators should prioritize the economic characteristics of an instrument when deciding its legal status. According to the submission, crypto-assets that fundamentally align with the definition of financial instruments should remain under the jurisdiction of existing industry legislation, specifically MiFID II (Markets in Financial Instruments Directive).

The HPC highlighted several key recommendations for the commission:

• Regulatory decisions should focus on the function of the asset rather than the specific technology used for its issuance.
• Crypto-assets meeting the criteria of traditional financial instruments should not be migrated to MiCA but remain under MiFID II.
• Clearer boundaries are needed to prevent regulatory overlap and legal uncertainty for decentralized finance (DeFi) protocols.

Classification of Perpetual Futures

A significant portion of the feedback addressed the status of perpetual futures, a popular trading product in the cryptocurrency ecosystem. The HPC maintains that these contracts possess inherent derivative characteristics that are already well-defined and recognized by the MiFID II framework. By classifying these products under existing derivative rules, the HPC suggests that market participants can benefit from established investor protection standards. This stance aims to provide a consistent regulatory environment for both traditional and digital asset derivatives.

Perpetual futures possess the derivative characteristics already recognized by MiFID II and should be regulated by that framework.

The feedback from the Hyperliquid Policy Center arrives at a pivotal moment as the European Commission refines the technical standards for the MiCA framework. As the European Securities and Markets Authority (ESMA) and other bodies continue to deliberate, the input from industry policy centers like HPC highlights the ongoing debate regarding where decentralized innovations fit within established European financial law. The final implementation of these deliberations will significantly impact how blockchain-based financial products are governed across the Eurozone.