Jeff Yan Takes Hyperliquid’s U.S. Compliance Pitch to Washington

Hyperliquid co-founder Jeff Yan met with policymakers in Washington to argue that market operators should handle U.S. Know Your Customer (KYC) checks and oversight, placing those responsibilities on firms running markets through the network.

Yan’s position builds on his earlier case for market operators to take on U.S. regulatory responsibilities. HIP-3 lets firms launch perpetual exchanges on Hyperliquid. A deployer launching one perpetual exchange on mainnet has to stake 500,000 HYPE. Deployers choose the markets, set oracle parameters and leverage limits, and determine settlement terms.

Hyperliquid began testing a revised version of HIP-3 with identity verification in September. Payward, the parent company of Kraken, announced that month that it plans to use HIP-3 to offer Hyperliquid perpetual contracts to U.S. users.

ICE has separately invested in Trade.xyz and agreed to bring Trade.xyz’s perpetual contracts to the United States after receiving regulatory approval.

Yan’s proposal remains a policy position and has not been adopted as a U.S. rule.