Jeff Yan Says Hyperliquid Market Operators Should Carry U.S. Duties

Hyperliquid Labs co-founder and CEO Jeff Yan wants U.S. regulators to place obligations on firms that run financial markets through the network, a proposal that aligns with how its perpetual-market framework assigns responsibilities.

Yan described Hyperliquid as “a neutral layer on which finance can ultimately happen.” His view is that businesses operating markets should carry regulatory duties, rather than the underlying blockchain.

Under HIP-3, a mainnet deployer must stake 500,000 of Hyperliquid’s HYPE token to launch one perpetual exchange. The deployer is responsible for defining markets, setting oracle parameters and leverage limits, and handling settlement.

The Securities and Exchange Commission staff met July 14 with representatives of the Hyperliquid Policy Center, XYZ Ltd. and Sullivan & Cromwell LLP to discuss approaches to crypto-asset regulation. Yan’s proposal remains a policy position, not an adopted U.S. rule.