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Hyperliquid founder Jeff Yan said U.S. regulators should oversee firms that operate trading businesses on the blockchain, not the underlying network. In a Bloomberg interview, he argued that responsibility belongs at the layer where operators exercise control. Hyperliquid’s own perpetual futures market remains closed to U.S. customers, while Kraken parent Payward plans to offer U.S. investors derivatives using its technology through a regulated exchange.
Why it matters
Yan’s approach would let financial firms build regulated trading businesses on Hyperliquid without requiring the blockchain itself to register as an exchange. He compared the model to regulating firms that use internet infrastructure: oversight would attach to the businesses operating markets, rather than the underlying technology.
That distinction is central to whether decentralized infrastructure can support regulated financial activity. Yan said the technology could benefit existing traditional market operators, rather than displace them. A regulated operator using Hyperliquid could therefore create a bridge between the network and U.S. financial markets while keeping the network separate from the operator’s compliance responsibilities.
Market impact
Payward’s planned derivatives offering is a concrete test of that model. It could give U.S. investors access to products using Hyperliquid technology through a regulated exchange, even as Hyperliquid’s own perps remain unavailable to them. The two routes are distinct: regulated access through an operator does not mean U.S. customers can trade directly on Hyperliquid’s perpetual futures platform.
Yan’s comments follow President Donald Trump’s statement in August that the CFTC was working to bring Hyperliquid into the U.S. under federal regulations. How regulators define responsibility for firms deploying the technology, versus the network itself, will shape whether this institutional route can expand.
Frequently asked questions
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What regulatory approach did Jeff Yan propose for Hyperliquid?
Yan said U.S. oversight should apply to financial firms operating trading markets on Hyperliquid, rather than to the underlying network.
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How could firms use Hyperliquid without the blockchain registering as an exchange?
Yan’s proposal places regulatory responsibility on the firms operating markets, allowing them to build trading businesses on the blockchain.
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What is Payward planning to offer U.S. investors?
Kraken parent Payward plans to offer U.S. investors derivatives using Hyperliquid technology through a regulated exchange.
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Can U.S. customers currently trade on Hyperliquid’s perpetual futures market?
No. Hyperliquid’s own perpetual futures market remains closed to U.S. customers, although Payward plans a separate regulated offering using its technology.
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What CFTC development preceded Yan’s comments?
Yan’s comments followed President Donald Trump’s August statement that the CFTC was working to bring Hyperliquid into the U.S. under federal regulations.
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