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Hyperliquid Co-Founder Proposes U.S. Rules Target Application Layer Instead of Blockchain

BullishMedium impact
HYPEUSD$78.86 1.10%

Hyperliquid Labs co-founder Jeff Yan is advocating for U.S. regulations that protect underlying blockchain technology while placing compliance obligations directly on financial institutions operating on top of the network. Rather than regulating the base network itself, Yan suggests that oversight should focus on the application layer.

Yan noted that this regulatory approach would enable Hyperliquid (COINBASE:HYPEUSD) to enter Wall Street without bearing the heavy compliance burden typical of a conventional exchange. The platform is currently unavailable to U.S. customers and does not intend to replace existing market participants. Instead, it aims to serve as a technology provider for traditional financial firms, comparing its intended role to Amazon Web Services offering computing infrastructure.

Following the comments, Hyperliquid (COINBASE:HYPEUSD) was trading at 78.9 USD, up 1.15% on the day. Investors will watch whether U.S. lawmakers and regulatory bodies adopt an application-layer approach as decentralized infrastructure providers seek ties with traditional finance.

Key points

  • Jeff Yan advocates regulating financial institutions using the network rather than the blockchain infrastructure itself.
  • The proposed strategy could allow Hyperliquid (COINBASE:HYPEUSD) to access Wall Street without full exchange compliance burdens.
  • Hyperliquid aims to function as an infrastructure provider for traditional firms, similar to Amazon Web Services.
  • Hyperliquid is currently not open to U.S. customers and trading at 78.9 USD, up 1.15% today.

Written by our AI from expert market sources across the web. It can contain mistakes: check the facts before acting on them. Write-ups powered by the free AI API at FreeTheAI.org

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Questions and answers

What is Hyperliquid co-founder Jeff Yan proposing for U.S. regulation?

Jeff Yan proposes that U.S. rules protect blockchain networks and focus regulatory oversight on financial institutions operating at the application layer.

Is Hyperliquid available to U.S. customers?

No, Hyperliquid is currently not open to U.S. customers.

How does Hyperliquid plan to work with Wall Street?

Hyperliquid aims to provide underlying trading technology for traditional financial institutions, functioning like Amazon Web Services for financial markets.