- Hyperliquid founder Jeff Yan discussed DeFi derivatives regulation with U.S. policymakers in Washington.
- Talks centered on integrating onchain trading systems into formal U.S. regulatory frameworks.
- CME and ICE continue pushing for stricter oversight of Hyperliquid’s derivatives market activity.
Hyperliquid founder Jeff Yan met U.S. policymakers in Washington to discuss regulatory pathways for onchain derivatives markets in the United States. According to Yan, the meetings took place during discussions around the CLARITY Act and focused on how DeFi trading systems could operate within formal U.S. frameworks. The talks involved policymakers, Hyperliquid Policy Center, and broader industry stakeholders exploring compliance routes.
Policy Discussions Focus on Onchain Market Structure
According to Jeff Yan, conversations in Washington covered both technical and foundational aspects of onchain trading. Some sessions focused on the mechanics of Hyperliquid systems, while others introduced DeFi principles from first concepts.
Yan noted that policymakers showed varying levels of familiarity with onchain trading structures. However, discussions consistently returned to global demand for decentralized derivatives markets and their operational design.
Hyperliquid also emphasized efforts to build compliant access routes for U.S. users. The company stated that it is working toward integrating regulatory requirements into its trading infrastructure.
Previously, Hyperliquid established the Hyperliquid Policy Center in Washington on February 18. Jake Chervinsky leads the center after serving as chief policy officer at the Blockchain Association.
CLARITY ACT Frames Regulatory Conversations
The CLARITY Act formed a central reference point during the meetings in Washington. According to Yan, the discussions aligned with broader policy debates on how digital asset markets should be structured under U.S. law.
He also highlighted bipartisan engagement on crypto regulation, noting that policymakers showed interest in structured oversight models for onchain derivatives.
Meanwhile, traditional exchanges including CME Group and Intercontinental Exchange have raised concerns about Hyperliquid’s market activity. These firms have reportedly urged U.S. regulators to increase oversight of onchain derivatives platforms.
Their arguments focus on potential risks around market manipulation, especially in commodity-linked trading such as oil markets.
Exchange Competition and Regulatory Debate Expands
The policy discussions also included contrasting views between centralized exchanges and onchain platforms. According to prior reports, CME and ICE have encouraged registration requirements under the Commodity Futures Trading Commission framework.
Hyperliquid countered these positions by highlighting transparency features of blockchain-based systems. All trades, orders, and liquidations remain publicly verifiable onchain.
Bloomberg previously reported increased activity in oil-linked trading on Hyperliquid, which operates continuously outside traditional market hours. This expansion has intensified regulatory attention on how onchain derivatives markets should be supervised.
