Jeff Yan, the founder of the Hyperliquid protocol, stated in an interview with Bloomberg that US regulators should focus on entities operating trading markets on the platform rather than the decentralized exchange itself. He compared the protocol to internet infrastructure, suggesting that this regulatory model would allow Wall Street firms to launch products on Hyperliquid without the need to regulate the DEX as a traditional exchange.
Hyperliquid remains inaccessible to US users. However, Payward, the parent company of Kraken, intends to offer derivatives based on the protocol's technology to American investors via a regulated platform. This move could place Hyperliquid's technology under the oversight of the Commodity Futures Trading Commission (CFTC), even if the perpetual futures market remains restricted in the country.
These comments follow an August statement by Donald Trump regarding the CFTC's work to integrate Hyperliquid into the US federal regulatory system. Previously, Hyperliquid and trade[XYZ] submitted a proposal to the SEC for modernizing IPO mechanisms. Additionally, Hyperliquid has invested $29 million in lobbying for DeFi interests in Washington.
