October 15th 2026, 11:07 PM
Hyperliquid CEO Jeff Yan Unveils US Compliance Plan for Blockchain Market Operators
Key Summary
Hyperliquid Labs CEO Jeff Yan has proposed a US compliance plan that targets financial firms operating on the blockchain, rather than the blockchain itself. The plan aims to bring Hyperliquid into the US market without requiring the chain to register as a bank. Yan's proposal is similar to the internet analogy, where protocols move web traffic, and banks handle compliance. The plan has gained attention from regulators, including President Trump and CFTC Chair Michael Selig.
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Hyperliquid Wants into the US Market
Hyperliquid Labs CEO and co-founder Jeff Yan sketched a regulatory model in which US oversight targets the financial firms that run markets on Hyperliquid's Layer-1 blockchain. Under his proposal, the blockchain itself would sit outside exchange-level rules.The Internet Analogy
Yan's core argument leaned on a comparison to the internet. Nobody asks the protocols that move web traffic to register as a bank. The bank running a website on top of those protocols handles the compliance.Hyperliquid as a Partner to Traditional Finance
Yan also pitched Hyperliquid as a partner to traditional finance rather than a rival. He described the goal as supplying core infrastructure that established firms can build on.The HIP-3 Framework
Yan's proposal isn't purely theoretical. Hyperliquid already has a mechanism that separates the chain from the people running markets on it. Under the HIP-3 framework, anyone who wants to deploy a market on Hyperliquid must stake 500,000 HYPE tokens for at least 183 days. The HIP-3 setup lets third parties stand up their own markets while the main Hyperliquid platform stays closed to US traders.Payward's Structure
Kraken's parent is already testing the idea. Payward, the parent company of Kraken, announced a partnership with Bitnomial and NinjaTrader Clearing to offer permissioned perpetual futures tied to Hyperliquid markets. Those products are aimed at eligible US clients, with users not getting direct access to the main Hyperliquid platform.What This Means for Hyperliquid, Regulators, and Wall Street
For regulators, Yan's proposal offers a familiar shape. The CFTC already knows how to supervise clearing firms, futures commission merchants, and exchanges. Asking it to supervise the companies plugging into Hyperliquid, rather than a decentralized blockchain, keeps the agency inside its comfort zone.- \1\1\1
Yan's framework is a proposal, not policy. The CFTC has not formally adopted it, and the SEC's view on where Hyperliquid fits remains a separate variable.
#Hyperliquid#USCompliance#Blockchain#SEC