Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Jake Chervinsky, CEO of the Hyperliquid Policy Center, stated that markets are transitioning to blockchain technology, and the U.S. must implement new regulations to avoid being left behind.
Capitol in Washington, D.C. (Harold Mendoza/Unsplash, modified by CoinDesk)
Key points:
- The well-known decentralized exchange Hyperliquid has initiated a Washington, D.C.-based policy organization dedicated to decentralized finance regulations, entering a space already populated with various crypto policy groups.
- Legal expert Jake Chervinsky will lead the group’s efforts regarding perpetual derivatives and blockchain markets.
- The Hyper Foundation has pledged 1 million HYPE tokens valued at nearly $29 million to support this initiative.
Hyperliquid (HYPE), a blockchain-powered exchange that facilitated over $250 billion in perpetual futures trading last month, has established a U.S. lobbying and research branch aimed at influencing how legislators regulate decentralized finance (DeFi).
Related Posts
The Hyperliquid Policy Center, a nonprofit based in Washington, D.C., will concentrate on creating regulatory frameworks for decentralized exchanges, perpetual futures, and blockchain-based market infrastructure, as detailed in a press release issued on Wednesday.
STORY CONTINUES BELOWDon’t miss another story.Subscribe to the State of Crypto Newsletter today. See all newslettersSign me up
Jake Chervinsky, a notable crypto attorney and former head of policy at the Blockchain Association, will take on the role of founder and CEO.
This launch occurs amid ongoing discussions in Congress and among federal agencies regarding the oversight of crypto trading platforms and derivatives markets. Perpetual futures, which enable traders to maintain leveraged positions indefinitely, are commonly utilized on offshore platforms yet remain ambiguous under U.S. law.
The formation of this new organization adds to a crowded Washington crypto-policy landscape that already includes groups like the DeFi Education Fund and Solana Policy Institute, along with larger organizations such as the Digital Chamber, Blockchain Association, and Crypto Council for Innovation. Additionally, this development coincides with ongoing negotiations on Senate legislation that may establish U.S. DeFi policy.
Hyperliquid operates a decentralized exchange that allows users to trade perpetual futures directly on blockchain networks without a central intermediary. Rather than processing trades through conventional brokers or clearinghouses, transactions are settled on-chain.
The platform has rapidly emerged as one of the leading venues in crypto derivatives, recording over $250 billion in perpetual trading volume and $6.6 billion in spot volume in the last month, according to DefiLlama data.
"Financial markets are transitioning to public blockchains because they provide efficiency, transparency, and resilience that traditional systems cannot offer," Chervinsky remarked in a statement.
"The United States now faces a choice: we can either implement new regulations that permit this innovation to thrive domestically, or we can observe as other countries take advantage of the opportunity," he continued.
The new policy organization intends to inform lawmakers, release technical research, and advocate for regulations suited to decentralized systems, as per the press release.
The Hyper Foundation, which supports the Hyperliquid ecosystem, is contributing 1 million HYPE tokens, amounting to approximately $29 million, to finance the launch. While this is less than the sum committed to the previous year’s launch of the Ripple-backed National Cryptocurrency Association, it exceeds the $5.6 million allocated by the Digital Chamber in 2024 and the $8.3 million used by the Blockchain Association, according to public records.
