Hyperliquid enters into direct dialogue with the SEC: a new stage in regulating DeFi derivatives
The U.S. Securities and Exchange Commission (SEC) Crypto Task Force held a direct meeting with representatives from the Hyperliquid Policy Center, trade.xyz (XYZ Ltd.), and the law firm Sullivan & Cromwell LLP. The central topic of discussion was the regulation of crypto assets and decentralized perpetual contract markets—one of the fastest-growing segments of DeFi.
High-Level Dialogue: Who Discussed What
According to the official meeting memorandum, participants conducted a detailed analysis of the Hyperliquid protocol's technological architecture and the specifics of its market infrastructure. The meeting was initiated by the group officially represented by Natasha Vasan, a partner at Sullivan & Cromwell. Key industry figures included Hyperliquid Policy Center CEO Jake Chervinsky, Hyperliquid founder Jeff Yan, and XYZ Ltd. Head of Product Collins Belton. Notably, XYZ Ltd. is responsible for deploying the HIP-3 protocol and ensuring the 24/7 operation of perpetual contracts on the platform.
This meeting took place just days after the Hyperliquid Policy Center, together with the non-custodial wallet Phantom, submitted a detailed joint comment to the CFTC. In that document, the participants called for exempting on-chain application developers and self-custodial wallet users from traditional intermediary requirements. In essence, Hyperliquid is simultaneously engaging with two key U.S. regulators—the SEC and the CFTC—underscoring the systemic nature of their approach.
Strategic Context and Market Reaction
The Hyperliquid Policy Center, launched in February 2026 as an independent 501(c)(4) organization, aims to create legal pathways for Americans to access on-chain derivatives. The current negotiations represent one of the center's most notable initiatives since the project's inception.
In recent months, Hyperliquid has strengthened its position as a leader in the decentralized perpetual contract market. The talks highlight regulators' growing interest in high-throughput on-chain markets that operate without weekends or breaks—a fundamentally new challenge for the traditional financial system.
Against this news backdrop, the HYPE token showed steady growth, trading around the $65 mark. Investors have priced in expectations of potential regulatory easing for the ecosystem. Given that the SEC Crypto Task Force continues to solicit opinions from market participants, this meeting could directly 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 Expert Commentary: Hyperliquid's shift from operating outside U.S. jurisdiction to direct dialogue with Washington is a marker of maturity for the entire DeFi derivatives sector. If a regulatory compromise is reached, we could witness the legalization of an entire asset class, fundamentally reshaping the American crypto market landscape. However, investors should remember: the path from negotiations to regulatory acts is typically long and full of compromises.