The cryptocurrency market received a powerful signal: US President Donald Trump publicly stated that regulators are working on the full legalization of the decentralized exchange Hyperliquid within the country. The platform's native token, HYPE, reacted instantly — within a few hours, the gain exceeded 6%, and by the morning of August 20, the total movement had reached an impressive 23.5%.
This statement was made on August 19 at the White House during a meeting with leaders of major crypto and technology companies. Among those invited were top executives from Coinbase, Ripple, and Nasdaq, as well as SEC Chairman Paul Atkins and CFTC Chairman Michael Selig. Trump specifically thanked Selig for his role in the legalization process, emphasizing that work is being carried out toward a "fully legal and transparent" entry of Hyperliquid into the US market.
Why this matters for the market
Hyperliquid is a leading decentralized platform for trading perpetual futures, which has so far blocked access for users from the US. This restriction created a serious barrier: American traders, who control a significant share of the global derivatives market, were cut off from the protocol. Legalization opens access to a huge pool of liquidity and, consequently, to new volumes of fees.
It is telling that the date of the announcement was not chosen by chance. Already on Thursday, August 20, the first meeting of the CFTC's Advisory Committee on Innovation will take place in Washington. On the agenda are crypto assets, artificial intelligence, and prediction markets. Selig is expected to present specific regulatory details, which will be a key moment for the further dynamics of HYPE.
It is worth noting that preparations have been underway for several months. Back in July, the Hyperliquid Policy Center, together with the Phantom wallet, filed a petition with the CFTC requesting that DeFi protocols be exempted from outdated exchange rules that are poorly suited to non-custodial online order books.
The current market capitalization of HYPE is approximately $15.1 billion, placing the token tenth among all crypto assets. It is worth recalling that in May, HYPE surpassed Dogecoin for the first time and entered the top 10.
However, not everything is smooth. CME Group and ICE, the owner of the NYSE, are advocating for stricter control over the platform, citing risks of manipulation and sanctions. Compliance issues, including registration, identity verification, and leverage limits, remain unresolved.
My view: The market has already priced in an optimistic scenario, but the key test is tomorrow's meeting. If Selig presents a concrete roadmap rather than general principles, we will see a continuation of the rally. Otherwise, a correction is inevitable — too much is already priced in.