Bloomberg: Hyperliquid Seeks U.S. Rulemaking That Protects Blockchains and Targets Regulation at the Application Layer

Jeff Yan, co-founder of Hyperliquid Labs, is advocating for the United States to establish regulatory frameworks that protect its underlying blockchain. He argues that Hyperliquid's regulatory obligations should fall on financial institutions operating markets on top of the blockchain — the application layer — rather than the blockchain network itself. This regulatory delineation would allow Hyperliquid to access Wall Street while avoiding the full compliance burden borne by traditional centralized exchanges. Jeff Yan also noted that Hyperliquid has not yet opened access to U.S. customers. The platform aims to serve as underlying trading infrastructure for traditional financial institutions, rather than displacing existing financial market participants, positioning itself analogously to Amazon Web Services (AWS) which provides computing infrastructure for enterprise clients.

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