Hyperliquid founder Jeff Yan proposed a regulatory approach where the responsibility for compliance should lie with companies managing blockchain trading platforms, rather than the network itself. He stated this in an interview with Bloomberg. According to Yan, this model would allow Hyperliquid to develop and collaborate with traditional financial institutions without having to assume all the regulatory obligations that apply to regular exchanges.
He compared the proposed model to internet infrastructure, which supports financial services but is not subject to similar oversight. Yan cited Amazon Web Services as an example, which provides computing resources to companies without replacing their core products. "Regulation is at the level where there are control levers, and it is those who deploy [services] that exercise this control," – he said.
According to Yan, Hyperliquid aims to become the infrastructure level for trading and liquidity, where large financial institutions can create their own products. Currently, the platform is not available to US clients. Meanwhile, as Bloomberg notes, Payward, the parent company of the Kraken cryptocurrency exchange, announced plans to offer American investors derivatives based on Hyperliquid technology through a regulated exchange.
Yan acknowledged that US regulators act cautiously because they must consider the existing financial system and mechanisms for protecting its participants. At the same time, he believes that authorities are ready to quickly respond to the emergence of new technologies. "Regulators strive to embrace innovation, but there is a very high responsibility associated with it because there is a system that generally works well, serves many people, and has built-in protection mechanisms," he noted.
This material is prepared solely for informational purposes and does not constitute financial advice or a recommendation.
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