Key Takeaways
- Hyperliquid launches a $29 million Policy Center in Washington, D.C. to shape U.S. crypto regulations.
- The nonprofit, led by Jake Chervinsky, will advocate for clear DeFi rules.
- The initiative aims to help decentralized trading platforms operate legally in the U.S.
Hyperliquid, a fast-growing decentralized crypto exchange, is stepping up its presence in Washington, D.C.
The Hyper Foundation announced an investment of $29 million in the newly formed Hyperliquid Policy Center, aiming to influence crypto and decentralized finance (DeFi) regulations in the United States.
Unstaked Rewards Fund the New Initiative
The Hyperliquid Policy Center will focus on creating a “clear, regulated path” for DeFi to expand in the U.S.
Its activities will include conducting research, engaging with lawmakers, and proposing practical rules, particularly around perpetual derivatives and blockchain-based markets.
Jake Chervinsky, a prominent crypto lawyer and former Blockchain Association and Variant Fund professional, will lead the center as founding CEO.
He emphasizes that financial markets are increasingly moving to public blockchains for their speed, transparency, and resilience compared to legacy systems.
Chervinsky warns that if U.S. rules are not updated, other countries could take the lead in this emerging technology.
The initiative is funded by unstaking nearly one million HYPE tokens, the native tokens of the Hyperliquid platform, which were set to be unstaked shortly after the announcement.
Hyperliquid Engages Regulators and Lawmakers
The center plans to educate Congress and regulatory bodies about DeFi operations, helping draft legislation that protects investors while enabling innovation.
This includes guidance on how decentralized exchanges could register or receive exemptions under U.S. law.
While other crypto advocacy groups already operate in D.C., Hyperliquid’s funding distinguishes it as one of the largest single efforts from a DeFi project to shape policy.
Hyperliquid is already a major player in decentralized trading, handling over $250 billion in perpetual futures trades last month alone.
Perpetual futures allow traders to bet on crypto prices without expiration dates.
Hyperliquid Enters D.C. to Shape DeFi Policy
The timing of Hyperliquid’s D.C. expansion is significant. U.S. lawmakers are considering bills such as the Digital Asset Market Clarity (CLARITY) Act, which aims to clarify the distinction between centralized companies and decentralized protocols.
However, uncertainties remain regarding decentralized exchanges and certain reward structures.
Hyperliquid’s Policy Center aims to provide a strong DeFi voice in these discussions, producing technical reports and meeting with officials to explain blockchain markets’ benefits, including transparency and resilience.
The move shows how crypto companies are spending more to influence rules.
After years of “regulation by enforcement” from agencies like the SEC, many in the industry want proactive laws instead.
Hyperliquid’s $29 million “war chest” is one of the biggest single efforts from a DeFi project to shape policy.
Looking Ahead
Overall, this is a bold step for Hyperliquid.
It started as a trading platform but is now trying to help rewrite the rules for the whole crypto space in America.
If successful, it could make it easier for DeFi to operate legally in the U.S., bringing more users and growth.
But it also faces challenges in a crowded lobbying world and ongoing debates in Congress.
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Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
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