The SEC's specialized digital assets working group held a closed-door meeting with representatives from the Hyperliquid Policy Center, the company trade.xyz (XYZ Ltd.), and lawyers from Sullivan & Cromwell LLP. The key topics of discussion were oversight of the crypto sphere and the operational principles of decentralized platforms for trading perpetual contracts.
The agency's official memorandum confirms that the technological features of the Hyperliquid protocol and its market structure mechanisms were the focus. The negotiations themselves were organized following an official request submitted by Natasha Vasan, a partner at Sullivan & Cromwell, who represented the interests of the entire group.
Key Participants and Agenda
From Hyperliquid's side, the meeting was attended by Hyperliquid Policy Center CEO Jake Chervinsky, project 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.
Notably, 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 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. This demonstrates a significant shift in the project's strategy: from operating in a "gray area" to open, pragmatic dialogue with Washington.
Growing Interest and Market Reaction
The Hyperliquid Policy Center began its work in February 2026 as an independent 501(c)(4) organization, aiming to create legal avenues for Americans to access on-chain derivatives. The current negotiations have become 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 one of the leaders in the decentralized perpetual contracts market. The negotiations highlight the increasing interest of regulators in high-throughput on-chain markets that operate without weekends or breaks.
Against the backdrop of this news, the HYPE token rose steadily, trading around $65. Investors were pricing in expectations of potential regulatory easing for the ecosystem.
As the SEC's specialized group continues to gather industry opinions, the outcomes of the meeting could directly form the basis for future standards for the decentralized sector. In the near future, the agencies plan to review new feedback from market participants and hold a series of working meetings to prepare an effective regulatory framework.
Analytical Commentary: The fact that Hyperliquid is simultaneously engaging in dialogue with both the SEC and the CFTC speaks to the project's maturity and readiness for institutional recognition. For the market, this is a signal: the era of "regulatory uncertainty" for leading DeFi protocols is gradually giving way to an era of "regulatory integration." If the negotiations lead to the creation of clear rules for on-chain derivatives, this could become a powerful catalyst for the entire sector.