The SEC's specialized crypto working group held an in-person meeting with representatives from the Hyperliquid Policy Center, trade.xyz (XYZ Ltd.), and the law firm Sullivan & Cromwell LLP. The discussion centered on the regulation of crypto assets and decentralized perpetual contract markets, a key segment of modern DeFi infrastructure.
According to the official meeting memorandum, participants thoroughly analyzed the technology of the Hyperliquid protocol 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 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. XYZ Ltd. is responsible for deploying HIP-3 and 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 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.
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 highlight the growing interest of regulators in high-throughput on-chain markets that operate without weekends or breaks.
Against this news 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.
The discussion reflects a new phase in the development of cryptocurrency regulation in the U.S.: key market players are moving from experiments outside the country to direct dialogue with Washington.
My comment: This meeting is a significant signal. Hyperliquid, as the largest player in the DeFi derivatives segment, is effectively paving the way for the entire sector. If regulators recognize that writing code is not equivalent to managing a market, we will see a precedent that changes the rules of the game for all on-chain protocols. The market is already pricing in this scenario — the rise of HYPE above $65 is proof of that.