Hyperliquid Founder Calls for US Oversight of Trading Platforms, Not Its Blockchain

Jeff Yan Tells Bloomberg US Regulation Should Target Companies Using Blockchain, Not the Base Network Itself

Jeff Yan, founder of Hyperliquid, said US regulators should oversee financial firms that operate on blockchain rather than regulate the network itself.

Yan's proposal could allow Wall Street firms to create regulated trading businesses on Hyperliquid without the need to register the blockchain as an exchange.

Kraken parent Payward plans to offer US investors derivatives using Hyperliquid's technology through a regulated exchange, even though Hyperliquid's permanent futures market is closed to them.

Hyperliquid founder Jeff Yan wants US regulators to oversee financial firms that use his blockchain, rather than the network itself.

In an interview with Bloomberg on Thursday, companies that operate in hyperliquid trading markets must take responsibility for meeting regulatory requirements, just like financial companies that use Internet infrastructure.

"Regulations are at the layer where the controls are, and actually the deployers are the ones who apply those controls," Yan said.

Hyperliquid, best known for its perpetual futures trading platform, remains closed to US customers.

However, Kraken's parent company, Payward, plans to offer investors country derivatives using Hyperliquid technology through a regulated exchange. For Hyperliquid, this means it can add an operator regulated by the Commodity Futures Trading Commission (CFTC), even if its profit market is not available to US clients.

Ian's proposal allows Wall Street firms to build trades on Hyperliquid without requiring the blockchain to be a regulated exchange.

"We're not trying to move anything," Ian said. "In fact, I think this technology could benefit everyone who is currently operating markets in a more traditional environment."

His comments came after US President Donald Trump said in August that the CFTC was trying to bring Hyperliquid into the US under federal regulations.