Jeff Yan, CEO of Hyperliquid Labs, outlined on October 15, 2026, on Bloomberg’s Odd Lots podcast a regulatory model where US oversight targets licensed firms running markets on Hyperliquid rather than the underlying blockchain. His core argument drew on an internet analogy: protocols that move web traffic are not required to register as banks, that responsibility falls on the financial institutions using those protocols. On August 19, 2026, President Trump stated that CFTC Chair Michael Selig was actively working to bring Hyperliquid into US markets in a fully legal way, while the Hyperliquid Policy Center was funded in February 2026 with 1 million HYPE tokens to engage with regulators. The HIP-3 framework requires any market deployer to stake 500,000 HYPE tokens for at least 183 days, and Payward, Kraken’s parent company, already signed a partnership in September 2026 with Bitnomial and NinjaTrader Clearing to offer permissioned perpetual futures for eligible US clients.
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