SEC meets Hyperliquid, XYZ Ltd. on crypto regulation

The SEC met with Hyperliquid, XYZ Ltd., and others to discuss crypto asset regulation. The meeting reviewed Hyperliquid’s technology but did not grant regulatory approval.

The SEC Crypto Task Force recently convened with representatives from the Hyperliquid Policy Center, XYZ Ltd. (trade.xyz), Highland Labs Pte. Ltd., and Sullivan & Cromwell LLP to discuss regulatory approaches for crypto assets and decentralized perpetual markets. The meeting, initiated by a formal request from Sullivan & Cromwell partner Natasha Vasan, centered on reviewing the Hyperliquid protocol’s technology, market infrastructure, and ecosystem. Key figures from Hyperliquid and XYZ Ltd. attended, aiming to address regulatory challenges and explore frameworks for decentralized finance derivatives. The discussions emphasized information sharing and regulatory engagement, but did not result in any regulatory approvals or commitments from the SEC. Market sentiment views the meeting as a positive step toward greater regulatory clarity, although no formal endorsements or exemptions were granted. Notably, Hyperliquid’s open interest reached a record $11.07 billion in 2026, underscoring the platform’s growth amid ongoing regulatory dialogue.