WuBlockchain
Hyperliquid founder Jeff Yan says US oversight should target firms that deploy and operate markets on the network, not the underlying Layer 1 blockchain. He told Bloomberg's Odd Lots podcast that Hyperliquid should be treated as financial infrastructure rather than a traditional exchange.
Why it matters
Yan's argument separates the protocol from the entities exercising control over markets built on it. Under that approach, firms operating markets would carry regulatory obligations while Hyperliquid could continue as shared liquidity and trading infrastructure.
Market impact
Kraken parent Payward plans to offer derivatives to US investors using Hyperliquid technology through a regulated exchange. Yan said Hyperliquid aims to provide infrastructure for Wall Street institutions, not replace them. The network remains unavailable to US users, making the role of regulated market operators central to this proposed path for institutional access.
Frequently asked questions
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What does Jeff Yan want US regulators to oversee?
Yan argues that regulation should apply to firms that deploy and operate markets on Hyperliquid, rather than to the underlying blockchain.
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How does Yan characterize Hyperliquid's role?
He says Hyperliquid should be treated as financial infrastructure that can provide shared liquidity and trading services.
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What is Payward planning to offer using Hyperliquid technology?
Kraken parent Payward plans to offer derivatives to US investors through a regulated exchange using Hyperliquid technology.
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Does Yan see Hyperliquid as a replacement for Wall Street institutions?
No. Yan said Hyperliquid aims to provide infrastructure for Wall Street institutions rather than replace them.
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Can US users currently access Hyperliquid?
No. Hyperliquid remains unavailable to US users.
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