Hyperliquid discusses onchain derivatives regulation with US policymakers

Hyperliquid is going to Washington. Co-founder Jeff Yan met with US policymakers to advocate for onchain derivatives markets being folded into the country’s evolving regulatory framework, with conversations centering on the CLARITY Act.

From trading floors to Capitol Hill

The meetings focused on the technical mechanics of how onchain trading actually works, essentially a policy education effort aimed at legislators.

Hyperliquid established the Hyperliquid Policy Center in Washington on February 18, led by Jake Chervinsky. Chervinsky previously served as chief policy officer at the Blockchain Association.

The policy center’s mandate goes beyond just meeting with legislators. It’s positioning itself as a bridge between the world of DeFi trading and the traditional regulatory apparatus.

Why the CLARITY Act matters

The CLARITY Act has become a focal point for these discussions. There’s a belief within Hyperliquid’s team that a genuine policy window exists right now for integrating onchain derivatives trading into the US regulatory structure.

Fighting back against traditional venues

Part of the Hyperliquid Policy Center’s work involves addressing criticisms from traditional exchanges. Names like CME and ICE, the incumbents of the derivatives world, have been vocal about the risks of unregulated crypto trading venues.

Hyperliquid’s counter-argument is that onchain markets actually offer improved transparency compared to their traditional counterparts. Every trade, every order, every liquidation on a blockchain-based system is publicly verifiable.