Hyperliquid Founder Proposes New Regulatory Model for Blockchain Trading
- Jeff Yan suggested that compliance obligations should fall on companies operating blockchain trading venues, not the network itself.
- This model could facilitate partnerships between Hyperliquid and traditional financial institutions.
- Hyperliquid is currently unavailable to U.S. customers, but Payward plans to offer derivatives based on its technology in the U.S.
- Yan compared his regulatory framework to internet infrastructure, which supports services without direct oversight.
- U.S. regulators are taking a cautious approach due to existing financial systems and participant safeguards.
Yan’s proposal aims to allow Hyperliquid to serve as an infrastructure layer for trading and liquidity, enabling major financial institutions to innovate without excessive regulatory burdens. This approach could reshape how blockchain technology integrates with traditional finance.
The initiative highlights a shift towards operator-level regulation in blockchain trading, potentially impacting how derivatives based on this technology are offered in the U.S., as seen with Payward’s plans for U.S. investors.
