The specialized crypto working group of the U.S. Securities and Exchange Commission (SEC) held a direct meeting with representatives of the Hyperliquid Policy Center, the operator of the trade.xyz platform (XYZ Ltd.), and the law firm Sullivan & Cromwell LLP. The central topic of the negotiations was the regulation of crypto assets and decentralized perpetual contract markets — one of the fastest-growing segments of DeFi.
Meeting Details: From Technology to Regulatory Frameworks
According to the official meeting memorandum, participants thoroughly analyzed the technological architecture of the Hyperliquid protocol and the specifics of its market infrastructure. The meeting was initiated by the group officially represented by Natasha Vasan from 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 the key HIP-3 upgrade and ensuring 24/7 operation of perpetual contracts on the platform.
Notably, this 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 regarding the modernization of derivatives regulation. Thus, Hyperliquid is engaging at a high level with two key U.S. regulators in the same week, underscoring the strategic nature of their approach to compliance.
Strategic Breakthrough or Tactical Move?
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. Today's negotiations have become 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. The negotiations highlight regulators' growing interest in high-throughput on-chain markets that operate without weekends or breaks — unlike traditional exchanges.
Against this backdrop, the HYPE token rose steadily, trading around $65. Investors priced in expectations of potential regulatory easing for the ecosystem.
As the Crypto Task Force continues to solicit opinions from market participants, the meeting could 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.
My analysis: This dialogue is not just a protocol meeting but a signal of market maturity. Hyperliquid demonstrates that DeFi projects are ready not only for innovation but also for constructive dialogue with authorities. If regulators adopt a flexible approach based on technological neutrality, we will see explosive growth of legal on-chain derivatives in the U.S. Investors should closely monitor the development of this story — it could set a precedent for the entire sector.