Hyperliquid Seeking for the U.S. to place blockchain regulatory responsibility at the application layer
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AT A GLANCE
Jeff Yan advocates that the U.S. place Hyperliquid related regulatory responsibility at the application layer rather than on the blockchain network itself.
Article
Bloomberg:Hyperliquid Seeking U.S. rules that protect the blockchain and place regulation at the application layer
PANews October 18 reported, citing Bloomberg, that Hyperliquid Labs co-founder Jeff Yan is seeking U.S. rules that can protect its blockchain. He believes that Hyperliquid regulatory responsibility should fall on financial institutions operating markets based on the blockchain—namely, the application layer—rather than on the blockchain network itself. This regulatory allocation would enable Hyperliquid to enter Wall Street without bearing the full compliance burden of traditional exchanges. Jeff Yan also said that Hyperliquid is not yet open to U.S. customers and Hyperliquid would prefer to become the underlying trading technology used by traditional financial institutions rather than replace existing financial-market participants, positioning it analogously to Amazon Web Services (AWS) providing computing infrastructure to enterprises.
PANews, citing Bloomberg, reported that Hyperliquid Labs co-founder Jeff Yan is seeking U.S. rules that can protect its blockchain.
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Jeff Yan believes that Hyperliquid regulatory responsibility should be borne by financial institutions operating markets based on the blockchain, namely at the application layer, rather than by the blockchain network itself.
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Jeff Yan said that this regulatory allocation would allow Hyperliquid to enter Wall Street without bearing the full compliance burden of traditional exchanges.
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Jeff Yan said that Hyperliquid is not yet open to U.S. customers.
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Jeff Yan said that Hyperliquid would prefer to become the underlying trading technology used by traditional financial institutions rather than replace existing financial-market participants.
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Jeff Yan likened Hyperliquid positioning to Amazon Web Services (AWS) providing computing infrastructure to enterprises.
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
Jeff Yan hopes to position Hyperliquid as blockchain infrastructure providing underlying trading technology, and advocates that regulatory responsibility for specific market operations be borne by the financial institutions using the technology rather than by the underlying network. The above reflects its regulatory position and business positioning and does not mean that the United States has already established or adopted relevant rules.
Why it matters to readers
If future rules adopt this allocation of responsibility,Hyperliquid may find it easier to provide underlying technology to traditional financial institutions; if regulatory responsibility continues to extend to the underlying network, its compliance burden may be greater.
Beginners should distinguish between “a company putting forward a regulatory position” and “regulatory rules already being in force.” This report does not state that the United States has issued relevant rules, nor does it state that Hyperliquid has opened to U.S. customers.
Risks and unknowns
The report was relayed by PANews from Bloomberg; the original interview or full statements were not provided in the evidence.
It remains unclear whether U.S. regulatory agencies or legislative bodies will adopt this position.
Hyperliquid It remains unclear when it will open to U.S. customers.
Hyperliquid The evidence does not state whether partnerships with traditional financial institutions have been established.
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Related concepts
Application layer
This term is not in the glossary yet. Browse related concepts in the glossary.
