Hyperliquid founder Jeff Yan wants US regulators to oversee the financial firms that build trading markets on his blockchain, rather than the blockchain itself. He set out the view in an interview with Bloomberg on Thursday, 15 October 2026, CoinDesk reported.
This is Yan’s argument for how rules should work. No regulator has announced any decision on it.
What Yan said
According to CoinDesk, Yan said companies operating trading markets on Hyperliquid should be responsible for meeting regulatory requirements, in the same way that financial firms using internet infrastructure are.
“The regulation sits at the layer where there are controls, and indeed the deployers are the ones that exercise these controls,” Yan said, as quoted by CoinDesk.
In Hyperliquid’s terms, a “deployer” is the firm that sets up and runs a market on the network. Yan’s argument is that these firms control who can trade and how, so they are the ones that should carry the regulatory obligations. The blockchain underneath would act more like shared infrastructure.
He also played down the idea that Hyperliquid wants to replace traditional exchanges. “We’re not trying to displace anything,” Yan said, according to CoinDesk. “In fact, I think the technology can benefit everyone who currently operates markets in a more traditional setting.”
CoinDesk said the approach would let Wall Street firms build trading businesses on Hyperliquid without the blockchain itself having to operate as a regulated exchange.
Where Hyperliquid stands in the US
Hyperliquid is best known for its perpetual futures trading platform, which remains closed to US customers, according to CoinDesk.
Perpetual futures, or “perps,” let traders bet on the price of an asset without owning it. Unlike ordinary futures, they don’t expire, CoinDesk explained in an earlier report. Traders make or receive regular funding payments to keep positions open.
The Kraken connection
Yan’s comments fit with a plan already announced by Payward, the parent company of crypto exchange Kraken.
In September, CoinDesk reported that Payward plans to offer US clients access to onchain perpetual futures, starting with Hyperliquid’s HIP-3 markets. HIP-3 allows third parties to deploy and administer their own permissioned perpetual futures markets on Hyperliquid, according to CoinDesk.
Under that plan, and subject to regulatory approval, the contracts would be listed under the rules of Bitnomial Exchange, Payward’s exchange regulated by the Commodity Futures Trading Commission (CFTC). Bitnomial would act as the HIP-3 deployer, and Payward’s broker, NinjaTrader Clearing, would hold client accounts, CoinDesk reported. Trades would be matched and recorded on Hyperliquid’s public blockchain.
That is close to the model Yan describes: a regulated firm runs the market, while the blockchain provides the plumbing. CoinDesk noted in September that the plan did not mean Hyperliquid’s existing markets would become available to US customers, and that Payward had not given a launch date.
Washington’s interest
Yan’s comments also come after President Donald Trump said in August that the CFTC was working to bring Hyperliquid into the US, CoinDesk reported.
“I understand that [CFTC Chairman] Mike [Selig] is also working to bring Hyperliquid into the United States in a fully compliant and legal fashion, working very hard on that,” Trump said at a White House event at the time, according to CoinDesk. CoinDesk noted then that his comments did not mean the CFTC had approved the exchange.
What we don’t know
It is not clear whether US regulators accept the idea that a blockchain can sit outside regulation while firms on top of it are licensed. CoinDesk’s report does not include a response from the CFTC, and Payward’s plan still needs approval.
What this means
- A founder’s pitch, not a rule. Yan is arguing for where regulation should fall; no regulator has acted.
- A model already being tested. Kraken’s parent plans a CFTC-regulated market on Hyperliquid, subject to approval.
- US users still locked out. Hyperliquid’s own perps market remains closed to US customers.
Sources
- CoinDesk, “Hyperliquid founder wants U.S. oversight of trading platforms, not his blockchain”, Olivier Acuna, 15 October 2026 (reporting a Bloomberg interview). https://www.coindesk.com/policy/2026/10/15/hyperliquid-founder-wants-u-s-oversight-of-trading-platforms-not-his-blockchain
- CoinDesk, “Payward plans to offer U.S. clients onchain perpetual futures on Hyperliquid”, 16 September 2026. https://www.coindesk.com/markets/2026/09/16/payward-plans-to-offer-u-s-clients-onchain-perpetual-futures-on-hyperliquid
- CoinDesk, “HYPE jumps 11% as Trump says CFTC is working to bring Hyperliquid to U.S.”, Helene Braun, 19 August 2026. https://www.coindesk.com/markets/2026/08/19/hype-jumps-11-as-trump-says-cftc-is-working-to-bring-hyperliquid-to-u-s
