The SEC's specialized Crypto Task Force held an in-person 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.
According to the official meeting memorandum, the parties thoroughly examined the technological architecture of the Hyperliquid protocol and its market infrastructure. The meeting was initiated by the group, represented at the negotiations by Sullivan & Cromwell partner Natasha Vasan.
Key Participants and Agenda
The meeting was attended by 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 this 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 simultaneously engaging with two key U.S. regulators within a single week.
Strategic Context
The Hyperliquid Policy Center began operations in February 2026 as an independent 501(c)(4) organization aimed at creating legal avenues for Americans to access on-chain derivatives. The current negotiations with the SEC have become one of the center's most notable initiatives since the project's launch.
In recent months, Hyperliquid has strengthened its position as one of the leaders in the decentralized perpetual contract market. These negotiations highlight the growing interest of regulators in high-throughput on-chain markets that operate without weekends or breaks.
Against this backdrop, the HYPE token rose steadily, trading around $65—as investors priced in expectations of potential regulatory easing for the ecosystem.
My Professional Opinion
The direct dialogue between Hyperliquid and the SEC is not just a formality but a clear signal to the market: regulators acknowledge that DeFi derivatives have become systemically significant. If Washington establishes clear rules for on-chain perpetual contracts, we will witness explosive growth of institutional capital in this segment. Hyperliquid is acting as a pioneer here, and this gives its ecosystem a tremendous competitive advantage.