The specialized SEC Crypto Task Force held a direct meeting with representatives from the Hyperliquid Policy Center, the company trade.xyz (XYZ Ltd.), and the law firm Sullivan & Cromwell LLP. The main topic 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, participants thoroughly analyzed the technology of the Hyperliquid protocol and its market infrastructure. The meeting was initiated by an official letter signed by Natasha Vasan, a partner at Sullivan & Cromwell, on behalf of the entire group. Key participants included 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 HIP-3 and ensuring 24/7 operation of perpetual contracts on the platform.
Double Strike on Regulators
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 the document, 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.
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.
Market Reacts Positively
In recent months, Hyperliquid has strengthened its position as a leader in the decentralized perpetual contract market. The negotiations highlight regulators' growing interest in high-throughput on-chain markets that operate without weekends or breaks. Against this news, 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 feedback and plan to hold additional sessions — work is underway to create truly workable rules.
My analysis: This is a landmark moment. Hyperliquid is not just lobbying for interests — it is setting a standard for the entire DeFi derivatives industry. If the SEC and CFTC adopt the proposed model of exempting developers from broker registration, it will open the floodgates for legal on-chain trading in the U.S. The HYPE market at $65 is just the first signal; with a positive outcome, we could see a revaluation of the entire sector.