Hyperliquid Policy Center submits feedback to the European Commission on MiCA review

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PANews October 1 reported that Hyperliquid Policy Center (HPC) submitted feedback on September 30 the European Commission’s targeted consultation on the Markets in Crypto-Assets Regulation (MiCA).HPC It 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 decisive; crypto-assets that meet the definition of financial instruments should remain subject to sectoral legislation; perpetual futures have characteristics of derivatives already recognized under MiFID II and should be regulated under that framework, while noting their differences from the products targeted by the EU’s 2018 year product intervention measures for contracts for differences.HPC It also called for regulation to be calibrated to the functions actually performed by market participants and the risks of products, and maintained that the transparency, tamper-proof records, and verifiable settlement of public blockchains can help achieve regulatory objectives and facilitate compliance by regulated intermediaries.

Source: https://www.panewslab.com/zh/articles/01a0f79e-7582-746a-a611-0e491df325cd

Key points

PANews reported that Hyperliquid Policy Center September 30 submitted feedback on the European Commission’s targeted consultation on MiCA.
The center argued that classification under MiCA and MiFID II should be based on the economic characteristics of the instrument, and that ledger technology should not be decisive.
The center maintained that crypto-assets meeting the definition of financial instruments should remain subject to sectoral legislation.
The center argued that perpetual futures have derivative characteristics already recognized under MiFID II and should be regulated under that framework.
The center also called for regulation to be calibrated to the functions actually performed by market participants and the risks of products.

AI-assisted interpretation

The following is analysis, separate from reported facts. Verify important claims independently.

This is policy feedback on the EU’s approach to classifying crypto-assets for regulatory purposes. Its core view is that the regulatory framework should be determined more by product functions, economic characteristics, and risks, rather than solely by whether ledger technology is used.

Why it matters to readers

If the relevant views are adopted in subsequent rules, they could affect the regulatory classification of crypto-assets, perpetual futures, and MiCA and MiFID II frameworks.

MiCA and MiFID II are different EU financial regulatory frameworks; this feedback discusses which set of rules should regulate certain crypto-assets.

Risks and unknowns

The provided materials do not include an acknowledgment of receipt from the European Commission.
The provided materials do not include the full original feedback from Hyperliquid Policy Center.
It remains unclear whether the European Commission will adopt these positions.

Hyperliquid Policy Center submits feedback to the European Commission on MiCA review

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