Hyperliquid Founder Jeff Yan Pushes US to Regulate Trading Firms, Not Blockchains

Highlights:

• Hyperliquid founder wants US regulators to oversee financial companies using its blockchain, not the network itself.
• Yan believes banks and brokers should handle licensing and customer checks while building trading markets on Hyperliquid.
• Kraken parent Payward expects to bring the futures segment to the US with Hyperliquid on a regulated basis. 

Hyperliquid co-founder Jeff Yan wants US regulators to oversee companies offering crypto trading services rather than the blockchain behind them. He believes financial firms should handle regulatory requirements when using Hyperliquid. His proposal could help the network enter US financial markets without facing the same rules as traditional exchanges.

According to an October 15 Bloomberg report, Yan discussed his plans during an interview on the Odd Lots podcast. Hyperliquid currently restricts US users because its trading platform lacks a US exchange license. Yan wants licensed financial firms to offer products using the network while handling their own regulatory duties.

Hyperliquid Founder Jeff Yan Says US Regulation Should Target Market Operators, Not the Underlying Blockchain

Hyperliquid founder Jeff Yan told Bloomberg's Odd Lots podcast that US regulators should treat Hyperliquid's Layer 1 blockchain as financial infrastructure rather than a… pic.twitter.com/APajp44kY6

— Wu Blockchain (@WuBlockchain) October 15, 2026

Why Jeff Yan Wants Different US Rules for Hyperliquid

Yan believes regulators should focus on who actually runs a trading service. These firms decide who can trade, which products to offer, and how to meet legal requirements. Hyperliquid provides the blockchain they use to process trades. Under his proposal, companies using Hyperliquid would still need licenses and would have to follow customer protection rules. But Yan argues that the blockchain should not face those same requirements simply because financial firms use it.

He compared Hyperliquid to Amazon Web Services, which helps businesses run their services without managing them directly. Yan sees a similar role for Hyperliquid, where banks and trading firms could build their own markets on the network. Hyperliquid is known for perpetual futures, which allow traders to bet on price movements without a fixed expiration date. Traders can also leverage up to put on bigger trades, but this can also lead to higher losses. These derivatives products are regulated in the US by the Commodity Futures Trading Commission (CFTC). 

Kraken Parent Payward Plans US Futures Trading on Hyperliquid

Yan’s proposal comes as Kraken’s parent company, Payward, prepares to bring Hyperliquid-based products to US customers. On September 16, Payward announced plans to offer perpetual futures through Hyperliquid’s HIP-3 system. The technology allows financial firms to create markets with restricted customer access.

Under the plan, Bitnomial Exchange would operate the markets, while Bitnomial Clearinghouse would settle the contracts. NinjaTrader Clearing would manage customer accounts. Only customers approved by NinjaTrader and Bitnomial would be allowed to trade. Hyperliquid’s blockchain would match and record trades.

Payward’s regulated businesses would remain responsible for the trading services. However, the company still needs regulatory approval and has not announced a launch date. The proposed markets would also be separate from Hyperliquid’s existing platform, which remains unavailable to US users.

US Crypto Regulators Face Calls for Clearer Blockchain Rules

Yan’s latest comments follow an earlier effort to clarify US crypto regulations. On July 9, the  Hyperliquid Policy Center and crypto wallet provider Phantom asked the CFTC to separate software developers from companies operating financial services. They argued that publishing blockchain software should not automatically require exchange registration. The groups also urged regulators to let licensed firms use blockchain technology for trading and settlement. The proposal could make it easier for established financial companies to build on public blockchains while keeping their existing legal responsibilities.

How U.S. regulators treat that distinction will be the basis for Hyperliquid’s plans. The proposed futures markets at Payward could be a preliminary test, but they have yet to be approved for launch.