ChainCatcher report, according to Bloomberg, Jeff Yan, co-founder of Hyperliquid Labs, is seeking U.S. regulations that protect its blockchain. He believes that regulatory responsibility for Hyperliquid should fall on financial institutions operating markets on top of the blockchain—the application layer—rather than on the blockchain network itself. This regulatory distinction would allow Hyperliquid to enter Wall Street without bearing the full compliance burden of traditional exchanges. Jeff Yan also stated that Hyperliquid has not yet opened services to U.S. customers and prefers to serve as the underlying trading technology used by traditional financial institutions, rather than replacing existing market participants, positioning itself analogously to Amazon Web Services (AWS) providing computing infrastructure for enterprises.
Hyperliquid Seeks U.S. Regulations to Protect Blockchain and Shift Oversight to the Application Layer
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Summary
Hyperliquid co-founder Jeff Yan is advocating for U.S. regulations that safeguard blockchain infrastructure and shift oversight to the application layer. Yan argues that financial institutions, not the network itself, should bear regulatory responsibility—enabling Hyperliquid to engage with Wall Street under lighter compliance requirements. The company has not yet launched in the U.S. and plans to provide trading technology to traditional banks, similar to how AWS offers cloud computing services. Traders monitoring altcoins may view this as a potential catalyst. Fear and Greed Index readings suggest market sentiment is stabilizing ahead of major movements.
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