The SEC's specialized Crypto Task Force held an official meeting with representatives from the Hyperliquid Policy Center, the operator of the trade.xyz platform (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 — a segment that has become one of the fastest-growing in the DeFi industry over the past year.
The meeting was initiated by an official letter on behalf of the entire group, signed by Sullivan & Cromwell partner Natasha Vasan. According to the meeting memorandum, participants thoroughly analyzed the technological architecture of the Hyperliquid protocol and the specifics of its market infrastructure. Key figures in the negotiations included Hyperliquid Policy Center CEO Jake Chervinsky, Hyperliquid founder Jeff Yan, and XYZ Ltd. head of product Collins Belton — the company responsible for deploying HIP-3 and the 24/7 operation of perpetual contracts.
Notably, this event occurred just days after the Hyperliquid Policy Center, together with the non-custodial wallet Phantom, submitted a detailed joint comment to the CFTC. In it, the participants called for exempting developers of on-chain applications and users of self-custodial wallets from traditional requirements imposed on intermediaries. The July 9 letter was a response to the CFTC's June 18 request to modernize derivatives regulation. Thus, Hyperliquid is simultaneously engaging with two key U.S. regulators within the same week — a significant signal of the project's maturity and its drive toward legalization.
A New Phase of Regulatory Dialogue
The Hyperliquid Policy Center began operations in February 2026 as an independent 501(c)(4) organization, aiming to create legal avenues for Americans to access on-chain derivatives. The current negotiations represent one of the center's most notable initiatives with the SEC since the project's launch. In recent months, Hyperliquid has strengthened its position as a leader in the decentralized perpetual contract market — its platform processes billions of dollars in daily trading volume, operating without weekends or breaks.
Against the backdrop of this news, the HYPE token rose steadily, trading around $65 — investors priced in expectations of potential regulatory easing for the ecosystem. The market clearly views direct dialogue with the SEC as a positive signal, reducing the risks of sudden enforcement actions.
As the Crypto Task Force continues to solicit opinions from market participants, this meeting could significantly influence future recommendations for decentralized trading platforms. In the coming months, regulators expect new public comments and plan to hold additional sessions — work is underway to create truly workable rules. The discussion reflects a new phase in the development of cryptocurrency regulation in the U.S.: key market players are moving from experiments abroad to direct dialogue with Washington.
My analysis: The fact that Hyperliquid is simultaneously negotiating with both the SEC and the CFTC indicates a strategic approach by the team to regulatory risk. If the project achieves clear rules for decentralized derivatives, it will set a precedent for the entire industry — and will likely open the floodgates for institutional capital into this segment. HYPE looks like one of the most interesting assets for medium-term holding if the regulatory process follows a positive scenario.