The SEC's specialized crypto working group held a closed meeting with representatives from the Hyperliquid Policy Center, the company trade.xyz (XYZ Ltd.), and the law firm Sullivan & Cromwell LLP. The main topic of discussion was the regulation of crypto assets and decentralized perpetual contract markets, one of the fastest-growing segments of DeFi.
Technology and Infrastructure: Key Points of Contact
According to the official memorandum, participants thoroughly analyzed the technological architecture of the Hyperliquid protocol and the features of its market infrastructure. The meeting was initiated by a group represented by Natasha Vasan, a partner at Sullivan & Cromwell. Key participants included Hyperliquid Policy Center CEO Jake Chervinsky, Hyperliquid founder Jeff Yan, and XYZ Ltd. product lead Collins Belton. The latter company is responsible for deploying HIP-3 and ensuring the 24/7 operation of perpetual contracts on the platform.
Double Strike: Dialogue with the SEC and CFTC
The meeting took place just a few days after the Hyperliquid Policy Center, together with the non-custodial wallet Phantom, submitted a detailed joint comment to the CFTC. In this document, participants called for exempting developers of on-chain applications and users of self-custodial wallets from traditional intermediary requirements. The July 9 letter was a response to the CFTC's June 18 request for modernizing derivatives regulation.
Thus, within a single week, Hyperliquid entered into direct dialogue with two key U.S. regulators—the SEC and the CFTC. This underscores the project's systematic approach to legalizing and institutionalizing decentralized markets.
Market Reacts with Growth
Amid the news, the HYPE token showed steady growth, trading around the $65 mark. Investors are pricing in expectations of potential regulatory easing for the ecosystem. The market clearly perceives these negotiations as a signal that clarity on rules for DeFi derivatives is approaching.
My Expert Opinion
Hyperliquid's direct dialogue with the SEC and CFTC is not just a one-off meeting but a strategic move that could set a precedent for the entire industry. If regulators recognize that writing code does not equate to managing a market, we could see explosive growth in legal on-chain derivatives in the U.S. HYPE right now is a bet that Washington has finally heard the voice of DeFi.