The specialized crypto working group of the U.S. Securities and Exchange Commission (SEC) held direct talks with representatives of the Hyperliquid Policy Center, the trade.xyz platform (XYZ Ltd.), and the law firm Sullivan & Cromwell LLP. The key topic of the meeting was a discussion of the regulatory framework for crypto assets and decentralized perpetual contract markets.
According to the official meeting memorandum, the parties thoroughly examined the technological architecture of the Hyperliquid protocol and the specifics of its market infrastructure. The meeting was initiated by the group, officially represented by Sullivan & Cromwell partner Natasha Vasan.
Key Participants and Agenda
Among the meeting participants were Hyperliquid Policy Center CEO Jake Chervinsky, Hyperliquid founder Jeff Yan, and XYZ Ltd. Head of Product Collins Belton. The latter company is responsible for deploying the HIP-3 protocol and the 24/7 operation of perpetual contracts on the platform.
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 the document, the participants called for exempting developers of on-chain applications and users of self-custodial wallets from traditional requirements imposed on intermediaries.
The letter dated July 9 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.
Strategic Context
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 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. The negotiations signal growing regulatory interest in high-throughput on-chain markets that operate without weekends or breaks.
Market Reaction
Against the backdrop of the news, the HYPE token rose steadily, trading around $65 — as 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 is a landmark moment for the entire industry. Hyperliquid's direct dialogue with the SEC is not just a formality, but a clear signal that regulators are beginning to recognize on-chain infrastructure as a distinct class of financial markets. If workable rules can be developed, we will see a massive influx of institutional capital into decentralized derivatives. HYPE, as the native asset of the sector's leader, could become one of the main beneficiaries of this process.