Hyperliquid founder Jeff Yan wants regulators to oversee trading firms, not the blockchain
Jeff Yan told Bloomberg that U.S. oversight should apply to the firms using Hyperliquid's blockchain rather than to the network itself.
Why it matters
If adopted, Yan's framing would decide whether a purpose-built chain like Hyperliquid registers as an exchange or stays outside direct supervision, which is the line U.S. regulators are still drawing for on-chain trading venues. It also bears on Kraken parent Payward, which plans to offer U.S. investors derivatives using Hyperliquid's technology through a regulated exchange while Hyperliquid's own perpetual futures market remains closed to them.
Key facts
Jeff Yan told Bloomberg that U.S. regulatory oversight should apply to the firms using Hyperliquid's blockchain rather than to the network itself.
Reported by CoinDesk
Yan said companies operating trading markets on Hyperliquid should meet regulatory requirements much like financial firms using internet infrastructure.
Reported by CoinDesk
Hyperliquid remains closed to U.S. customers.
Reported by CoinDesk
Kraken parent company Payward plans to offer U.S. investors derivatives using Hyperliquid's technology through a regulated exchange.
Reported by CoinDesk
Hyperliquid operates as a decentralized exchange for perpetual futures contracts running on its own purpose-built blockchain rather than an existing network like Ethereum.
Reported by Bitcoin Insider
The SEC and CFTC have historically taken an expansive view of what counts as a regulated activity in crypto.
Reported by Bitcoin Insider
Yan's proposal could allow Wall Street firms to build regulated trading businesses on Hyperliquid without the blockchain registering as an exchange.
Reported by CoinDesk
What happened
Hyperliquid founder Jeff Yan said in a Bloomberg interview on Thursday that U.S. regulatory oversight should fall on the companies operating trading markets on Hyperliquid rather than on the underlying network. He put it plainly: the regulation sits at the layer where there are controls, and the deployers are the ones that exercise those controls, comparing the setup to financial firms that use internet infrastructure. CoinDesk reported Yan's remarks directly, while a Bitcoin Insider account, syndicated three minutes later, framed the same position as a lobbying push for a carve-out that exempts the base protocol layer while leaving trading venues subject to compliance. The two accounts agree on the substance: Hyperliquid runs as a decentralized exchange for perpetual futures on its own purpose-built blockchain rather than on an existing network, and that arrangement is what would place it outside direct oversight under Yan's proposal. Still unclear is whether any U.S. agency or lawmaker has responded. Bitcoin Insider notes that the SEC and CFTC have historically taken an expansive view of what counts as regulated activity in crypto, and that U.S. lawmakers and agencies have spent much of the past two years working through market structure questions.
How the story developed
- First report
First report by CoinDesk
Hyperliquid founder wants U.S. oversight of trading platforms, not his blockchain
- Update
Jeff Yan interviewed by Bloomberg on U.S. oversight of trading platforms
Yan said regulation should sit with the deployers operating markets on Hyperliquid rather than with the network.
- Update
Syndicated account describes the same proposal as a push for a protocol-layer carve-out
Bitcoin Insider framed the position as lobbying for the blockchain infrastructure behind the platform to be exempted from direct oversight.
How coverage built up
Independent sources over time, counted the way the consensus panel counts them: a republication of a wire story does not move the line.
- 15 Oct 2026, 10:00 UTC: CoinDesk — 1 independent source, 1 reports
- 15 Oct 2026, 10:04 UTC: Bitcoin Insider — 2 independent sources, 2 reports
Affected entities
Also mentioned: U.S. Securities and Exchange Commission, Ethereum, Donald Trump
Original sources
| Publisher | Report | Role | Published |
|---|---|---|---|
| CoinDesk Crypto media | Hyperliquid founder wants U.S. oversight of trading platforms, not his blockchain | Original | |
| Bitcoin Insider Aggregator | Hyperliquid Founder Pushes US Regulators to Exempt Blockchain Layer From Oversight | Syndicated |
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