A key player in the decentralized perpetual contracts market — the Hyperliquid ecosystem — has taken a decisive step toward institutional recognition. Representatives from the Hyperliquid Policy Center, the trade.xyz platform (XYZ Ltd.), and the law firm Sullivan & Cromwell LLP held an official meeting with the crypto-focused working group of the U.S. Securities and Exchange Commission (SEC). The main topic of the talks was the formation of clear and transparent rules for the on-chain derivatives market.
According to a memorandum published by the SEC, the meeting was initiated by an official letter on behalf of the group, signed by Sullivan & Cromwell partner Natasha Vasan. During the session, participants thoroughly analyzed the technological architecture of the Hyperliquid protocol and the specifics of its market infrastructure operations.
Key Participants and Agenda
Among the participants were Hyperliquid Policy Center CEO Jake Chervinsky, Hyperliquid founder Jeff Yan, and XYZ Ltd. product lead Collins Belton. The latter company, it should be noted, is responsible for deploying the HIP-3 upgrade and ensuring round-the-clock operation of perpetual contracts on the platform.
This meeting is not an isolated act. Just a few days prior, the Hyperliquid Policy Center, together with the non-custodial wallet Phantom, submitted a detailed joint comment to the Commodity Futures Trading Commission (CFTC). In the document, the participants called for exempting on-chain application developers and self-custodial wallet users from requirements imposed on traditional broker-intermediaries. Thus, Hyperliquid is simultaneously engaging in dialogue with two key U.S. regulators.
Context and Market Reaction
The Hyperliquid Policy Center, founded in February 2026 as an independent 501(c)(4) organization, aims to create legal avenues for Americans to access on-chain derivatives. The current negotiations have become one of the center's most notable initiatives regarding the SEC.
Amid the news of dialogue with the regulator, the HYPE token showed steady growth, trading around $65. Investors are clearly pricing in expectations of potential regulatory easing for the ecosystem.
The SEC's working group continues to solicit market participants' opinions, and this meeting could directly impact future recommendations for decentralized trading platforms. In the coming months, we can expect new public comments and additional sessions — work is underway to create truly functional rules.
My comment: Hyperliquid's shift from experiments outside U.S. jurisdiction to direct dialogue with Washington is a significant signal. This is not just an attempt to legalize, but a strategic move to shape standards for the entire DeFi sector. If regulators accept Hyperliquid's arguments, we will see a precedent that changes the rules of the game for all decentralized exchanges.