Hyperliquid Wants Regulators to Regulate the Businesses, Not the Blockchain Hyperliquid co-founder Jeff Yan believes regulators should focus on the companies operating trading services on Hyperliquid, rather than regulating the underlying blockchain itself. What does this mean? Think of AWS: Amazon provides cloud infrastructure, while businesses using it are responsible for their own services. Yan wants Hyperliquid to work the same way. The blockchain provides the trading infrastructure, while service providers operating markets should handle the relevant compliance requirements. Why is this good for Hyperliquid? • An easier path into the U.S. market: Regulated partners could offer trading services to U.S. users without requiring the underlying blockchain to operate like a traditional exchange. • More institutional adoption: Financial companies could build on Hyperliquid's infrastructure while handling compliance through their own regulated businesses. • Expansion beyond crypto: Hyperliquid could become infrastructure for a wider range of financial markets, not just crypto perpetuals. There's already a potential example: Payward, Kraken's parent company, plans to offer derivatives to U.S. investors through a regulated trading platform using Hyperliquid technology. Hyperliquid doesn't necessarily need to become a regulated exchange itself to reach traditional finance. If regulated businesses can build on its infrastructure, Hyperliquid could capture more market activity while partners handle the customer-facing compliance.