Hyperliquid founder wants U.S. oversight of trading platforms, not his blockchain
Reported by CoinDesk · AI-assisted summary by ChikoCorp AI News Desk
AI-generated summary based on the linked source; not independently verified. This is not investment advice. Verify market-moving details at the original publisher before acting. See our editorial policy, AI content policy, and financial disclaimer.
Summary
Hyperliquid founder Jeff Yan stated that U.S. regulators should focus on overseeing financial firms operating on the blockchain instead of regulating the blockchain network itself. Yan suggests that companies using Hyperliquid to run trading markets should meet regulatory requirements, allowing regulated trading businesses to operate on Hyperliquid without the blockchain registering as an exchange. Kraken's parent company, Payward, plans to offer U.S. investors derivatives based on Hyperliquid’s technology through a regulated exchange, although Hyperliquid's own perpetual futures market remains closed to U.S. customers.
Why it matters
This development could enable Wall Street firms to build regulated trading services on Hyperliquid's platform without imposing exchange registration on the blockchain network. Yan’s proposal might influence how blockchain-based trading platforms are regulated in the U.S., potentially benefiting traditional market operators who adopt such technology.
Key context
Hyperliquid is known for its perpetual futures trading platform, which is currently inaccessible to U.S. customers. The founder’s comments follow statements by former President Donald Trump in August that the Commodity Futures Trading Commission (CFTC) was working on integrating Hyperliquid under federal regulations. This approach contrasts with directly regulating blockchain networks, focusing instead on the entities deploying and controlling trading services on the blockchain.
Key numbers and entities
Jeff Yan (Hyperliquid founder), Kraken parent company Payward, Commodity Futures Trading Commission (CFTC), U.S. investors, and references to former President Donald Trump’s August statement.
What remains unclear
The source does not specify how regulators will implement oversight under Yan’s proposal or the timeline for U.S. approval of Hyperliquid-based trading businesses. Details on how Payward’s derivatives offerings will differ from Hyperliquid’s closed perpetual futures market and how market participants will be protected are also not explained.