The Hyperliquid protocol has taken an important step towards the institutionalization of decentralized finance. Representatives from the Hyperliquid Policy Center, the company trade.xyz (XYZ Ltd.), and the law firm Sullivan & Cromwell LLP held a closed-door meeting with the SEC's specialized crypto task force. The main topic of discussion was the regulatory framework for the perpetual contracts market and other decentralized assets.
According to the official meeting memorandum, participants thoroughly analyzed the technical architecture of the Hyperliquid protocol and the specifics of its market infrastructure. The meeting was initiated by a group represented on the negotiations by Natasha Vasan from Sullivan & Cromwell.
Key Participants and Agenda
From Hyperliquid's side, the meeting was attended by Policy Center CEO Jake Chervinsky, project founder Jeff Yan, and XYZ Ltd. Head of Product Collins Belton. The latter company, it should be noted, is responsible for deploying the key HIP-3 upgrade and ensuring the 24/7 operation of the perpetual contracts market.
Notably, 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 developers of on-chain applications and users of self-custodial wallets from traditional intermediary requirements. In essence, Hyperliquid is conducting parallel work with two key U.S. regulators — the SEC and the CFTC — within the same week.
Strategic Context
The Hyperliquid Policy Center was launched in February 2026 as an independent organization (501(c)(4)), aiming to create legal avenues for Americans to access on-chain derivatives. The current negotiations with the SEC represent one of the center's most prominent initiatives since its founding.
Against this news backdrop, the HYPE token showed steady growth, trading near the $65 mark. Investors are clearly pricing in expectations of potential regulatory easing for the ecosystem.
It is important to understand: the SEC's Crypto Task Force continues to actively 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 — real work is underway to establish workable rules.
My analysis: Hyperliquid's transition from an overseas experiment to direct dialogue with Washington is not just a PR move, but a strategic maneuver. The protocol is effectively seeking recognition of DeFi derivatives as a distinct asset class, rather than simply "uncontrolled trading." If the SEC and CFTC develop clear rules, Hyperliquid could become the first major project to legalize on-chain perpetuals in the U.S. For the market, this would be a powerful signal — a green light for the entire industry.