The SEC's specialized crypto task force held a direct meeting with representatives from the Hyperliquid Policy Center, the trade.xyz platform (XYZ Ltd.), and the law firm Sullivan & Cromwell LLP. The main topic of discussion was the regulation of crypto assets and decentralized perpetual contract markets — one of the fastest-growing segments of DeFi.
Details of the Closed Meeting
According to the official memorandum, participants thoroughly reviewed the technology of the Hyperliquid protocol and the specifics of its market infrastructure. The meeting was initiated by a group officially represented by Natasha Vasan from Sullivan & Cromwell. The delegation included Hyperliquid Policy Center CEO Jake Chervinsky, Hyperliquid founder Jeff Yan, and XYZ Ltd. Head of Product Collins Belton — the company responsible for deploying HIP-3 and the 24/7 operation of perpetual contracts.
The 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 intermediary requirements.
Strategic Dialogue with Two Regulators
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. This demonstrates the project's maturity and its readiness for constructive dialogue with authorities.
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 Context and Prospects
In recent months, Hyperliquid has strengthened its position as one of the leading markets for decentralized perpetual contracts. The negotiations highlight regulators' growing interest in high-throughput on-chain markets that operate without weekends or breaks. Against this backdrop, the HYPE token has been steadily rising, trading around $65 — with investors pricing in expectations of potential regulatory easing for the ecosystem.
As the Crypto Task Force continues to 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 — work is underway to create truly functional rules.
Analytical Commentary: Hyperliquid's transition from an experimental phase to direct dialogue with the SEC and CFTC is a landmark signal for the entire market. If regulators develop clear rules for on-chain derivatives, it could open the floodgates for institutional capital into DeFi. The HYPE token is likely to continue rising amid expectations of a positive outcome from the negotiations. However, investors should remember: regulatory certainty is a double-edged sword, and compromises may require concessions from the protocol.