Hyperliquid Founder Proposes Regulating Blockchain Users Rather Than the Network
Hyperliquid CEO suggests new approach to U.S. regulation
Jeff Yan, the founder of Hyperliquid, proposed that U.S. regulators should focus on the companies using a blockchain rather than the blockchain network itself. A blockchain is a digital system that records transactions across many computers. Yan shared his view in an interview on Thursday, October 15, 2026.
The proposal suggests that firms operating trading markets on a blockchain should be responsible for meeting regulatory requirements. Yan compared this to how financial firms currently use internet infrastructure without the internet itself being regulated as a financial entity.
Key points of the regulatory proposal
- Regulation should apply to the "deployers" who exercise control over specific trading platforms.
- The underlying blockchain network should remain separate from the regulation of the businesses using it.
- This approach could allow Wall Street firms to build regulated businesses on the network without requiring the blockchain itself to register as an exchange.
The founder's perspective on oversight
In an interview with Bloomberg, Yan argued that oversight belongs at the layer where controls exist. He stated that the technology is intended to benefit everyone currently operating in traditional markets rather than displacing them. By regulating the users of the technology rather than the technology itself, Yan believes financial institutions could more easily adopt blockchain systems.
Current status and future plans for U.S. investors
Hyperliquid is well known for its perpetual futures trading platform, which allows users to trade on the future price of assets without an expiration date. Currently, this market is closed to U.S. customers. However, Payward, the parent company of the Kraken exchange, plans to offer derivatives to U.S. investors using Hyperliquid technology through a regulated exchange.
This move could bring an operator regulated by the Commodity Futures Trading Commission (CFTC) onto the Hyperliquid network. The CFTC is a U.S. government agency that oversees derivatives markets.
Why this matters for the crypto industry
The proposal highlights a potential path for decentralized technology to work within federal regulations. In August 2026, President Donald Trump stated that the CFTC was working to bring Hyperliquid into the U.S. under federal rules. If Yan's proposal is accepted, it could set a precedent for how other blockchain networks and the companies built on them are treated by the law.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.