Hyperliquid Founder Seeks U.S. Oversight for Trading Firms

Hyperliquid founder Jeff Yan has proposed that U.S. regulatory oversight should apply to financial firms operating on the blockchain rather than to the underlying network itself, according to an interview with Bloomberg.

Regulatory Framework Proposal

Yan’s proposal aims to allow Wall Street firms to build regulated trading businesses on Hyperliquid without requiring the blockchain itself to register as an exchange. According to Yan, companies operating trading markets on the network should be responsible for meeting regulatory requirements, comparing the setup to financial firms utilizing internet infrastructure.

"The regulation sits at the layer where there are controls, and indeed the deployers are the ones that exercise these controls," Yan stated in the Bloomberg interview.

Market Access and Plans

While Hyperliquid's perpetual futures trading platform remains closed to U.S. customers, Kraken parent company Payward plans to offer U.S. investors derivatives using Hyperliquid’s technology through a regulated exchange. This development could introduce a Commodity Futures Trading Commission (CFTC) regulated operator to the ecosystem despite the perps market remaining unavailable locally.

President Donald Trump stated in August that the CFTC was working to bring Hyperliquid into the U.S. under federal regulations.

Key facts

• Hyperliquid founder Jeff Yan proposes U.S. oversight should target firms using the blockchain, not the network.
• Kraken parent Payward plans to offer U.S. investors derivatives using Hyperliquid's technology via a regulated exchange.
• Hyperliquid's perpetual futures market remains closed to U.S. customers.
• President Donald Trump stated in August that the CFTC was working to bring Hyperliquid under U.S. federal regulations.