Switch to seedless. Get 30% off with SWITCH30 till Oct 21Jeff Yan urges US crypto rules for market operators
7 Regulation Jeff Yan urges U.S. crypto rules to focus on financial firms using Hyperliquid, not the blockchain itself, enabling Wall Street adoption and innovation while keeping compliance with market operators.
Hyperliquid founder Jeff Yan is urging U.S. regulators to place compliance obligations on financial firms operating markets on Hyperliquid’s blockchain, rather than on the blockchain network itself. Yan argues that regulatory oversight should target entities controlling trading activities, similar to how traditional financial institutions use the internet without the internet itself being regulated as an exchange. This approach, Yan believes, would allow Hyperliquid to expand into Wall Street and encourage innovation, without the platform bearing the full compliance burden of a traditional exchange. Hyperliquid, a decentralized trading platform focused on perpetual futures contracts, currently restricts U.S. customer access due to regulatory challenges. Meanwhile, traditional financial institutions, including Kraken’s parent company Payward, are exploring ways to integrate Hyperliquid’s technology into regulated trading operations. Under Yan’s proposal, regulated firms would handle onboarding, surveillance, and reporting, while the blockchain would be responsible only for matching and recording trades.
