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KYC/AML Can Unlock U.S. On-Chain Markets, Says Chervinsky

The constructive signal is a clearer route for compliant intermediaries as the SEC and CFTC coordinate rules for U.S. on-chain markets.

Jake Chervinsky, CEO of the Hyperliquid Policy Center, said in a Sept. 7 interview with The Rollup that KYC and AML requirements are unavoidable for on-chain finance seeking compliant access to the U.S. market. He said future technology must enable on-chain intermediaries to meet requirements from the SEC, CFTC and U.S. Treasury.

Why it matters

The message puts compliance at the center of U.S. on-chain market design. For builders and institutions seeking access, KYC and AML are not optional features to add later, but part of the infrastructure needed to connect blockchain-based finance with regulated markets.

Market impact

The regulatory signal is constructive. The SEC and CFTC are working to coordinate their rules, gradually clarifying a path for on-chain markets to enter the U.S. The sector's next test is whether compliance-ready infrastructure can let intermediaries satisfy those requirements while keeping on-chain finance usable.

Frequently asked questions

  1. Which U.S. agencies' requirements must future on-chain intermediaries meet?

    Chervinsky identified the SEC, CFTC and U.S. Treasury as the agencies whose requirements future technology must help on-chain intermediaries meet.

  2. What makes KYC and AML central to compliant U.S. on-chain finance?

    Chervinsky said they are unavoidable for on-chain finance seeking compliant access to the U.S. market, making them part of its core infrastructure.

  3. What are the SEC and CFTC doing to clarify on-chain market entry?

    The SEC and CFTC are working to coordinate their rules, gradually clarifying a path for on-chain markets to enter the U.S.

  4. What role will technology play in compliant on-chain access?

    Future technology must enable on-chain intermediaries to meet requirements from the SEC, CFTC and U.S. Treasury.

  5. Why is regulatory coordination constructive for builders and institutions?

    The SEC and CFTC are gradually clarifying a path for on-chain markets to enter the U.S., giving builders and institutions a more defined route to regulated access.

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