Hyperliquid founder Yan is lobbying US regulators for exemptions or favorable rules for its blockchain.
Regulation & Gov ·
Hyperliquid founder Yan is engaging with US regulators to shape the regulatory framework governing its blockchain infrastructure. The lobbying effort centers on positioning market operators—rather than the protocol layer itself—as the entities subject to regulatory oversight, according to reporting. This approach would create separation between the blockchain protocol and the platforms that operate on top of it, potentially insulating the underlying network from direct regulatory requirements.
The timing reflects broader industry dynamics, as competitors like Kraken's parent company Payward advance regulated derivatives offerings. Yan's position argues that regulators should focus on market participants rather than the protocol itself, establishing a distinction between infrastructure and service layers. This framing seeks to clarify regulatory boundaries ahead of potential enforcement actions or rule-making in the derivatives space.
What remains unclear is whether regulators are receptive to this operator-focused framework, how it would apply to protocols offering native trading functions, and whether other blockchain projects are pursuing similar exemptions or safe harbor language.