ICE's CEO calls for equal regulations for on-chain futures as demand grows, emphasizing engagement with decentralized platforms like Hyperliquid.
The Intercontinental Exchange (ICE) is pushing for equitable regulations in the on-chain perpetual futures market, as emphasized by CEO Jeffrey Sprecher during the Bernstein conference, according to The Block.
Sprecher revealed that ICE has engaged in multiple discussions with the decentralized platform Hyperliquid, which is gaining traction due to an increasing demand for 24/7 trading in commodity derivatives.
"We are not scared. We are communicating with these people and learning from them. We help them understand our world, and they help us understand theirs," Sprecher stated.
Earlier reports indicated that ICE and CME Group had reached out to the Commodity Futures Trading Commission (CFTC) and U.S. lawmakers to express concerns regarding Hyperliquid's operations. Traditional exchanges fear that anonymous trading could affect global oil benchmarks and pose risks of market manipulation.
Sprecher noted that their regulatory inquiries aim to clarify the limitations ICE faces in offering similar products and to explore how to reconcile the legal differences between centralized exchanges and decentralized finance (DeFi) platforms.
He highlighted the need for regulators to determine whether perpetual contracts should be classified distinctly or aligned with existing swap regulations.
In a related development, ICE and OKX recently launched perpetual oil futures for Brent and WTI, following ICE's investment in OKX and its acquisition of a board seat at the cryptocurrency exchange.
Additionally, Sprecher mentioned the TradeXYZ platform, which operates on Hyperliquid and has introduced pre-IPO futures for SpaceX shares. He expressed interest in observing how the on-chain market price of these assets compares to the actual stock sale results.
Notably, in March, major corporations accelerated their adoption of blockchain technology in stock markets, with both NYSE and Nasdaq endorsing this shift.
