Bloomberg: Hyperliquid Seeks US Rules That Protect Its Blockchain, Placing Regulation at the Application Layer

October 18 — According to Bloomberg, Hyperliquid Labs co-founder Jeff Yan is seeking US rules that can protect its blockchain. He believes Hyperliquid's regulatory responsibility should fall on the financial institutions operating markets on top of the blockchain — that is, at the application layer — rather than on the blockchain network itself. This regulatory division would allow Hyperliquid to enter Wall Street without bearing the full compliance burden of a traditional exchange.

Jeff Yan also said that Hyperliquid has not yet opened to US customers, and that Hyperliquid would rather become the underlying trading technology used by traditional financial institutions than replace existing financial market participants, positioning it by analogy to Amazon Web Services (AWS), which provides computing infrastructure for enterprises.