Hyperliquid Policy Center Submits Feedback to European Commission on MiCA Review

PANews reported on October 1 that the Hyperliquid Policy Center (HPC) submitted feedback on September 30 to the European Commission's targeted consultation on the Markets in Crypto-Assets Regulation (MiCA). HPC argued that the classification under MiCA and MiFID II should be based on the economic characteristics of the instrument, and that ledger technology itself should not be the determining factor; crypto-assets that meet the definition of financial instruments should continue to be subject to sectoral legislation; perpetual futures possess the derivative characteristics already recognized under MiFID II and should be regulated under that framework, while noting the differences from the products targeted by the EU's 2018 product intervention measures on contracts for differences. HPC also called for regulation to be calibrated according to the functions actually performed by market participants and product risk, and argued that the transparency, immutable records, and verifiable settlement of public blockchains help achieve regulatory objectives and facilitate compliance by regulated intermediaries.