Hyperliquid founder Jeff Yan has called for a different approach to cryptocurrency regulation in the United States, arguing that regulators should focus on the companies that operate financial markets rather than the blockchain infrastructure supporting them. The remarks, published on October 15, 2026, position Hyperliquid's Layer 1 network as shared financial infrastructure rather than a conventional trading venue.

Speaking on Bloomberg's Odd Lots podcast, Yan said Hyperliquid's Layer 1 blockchain — the base network layer on which applications and markets are built — should be viewed as financial infrastructure instead of a traditional cryptocurrency exchange. Under his proposed approach, regulatory obligations would apply to the businesses that create, deploy and control markets operating on the network.

The distinction is significant because a blockchain can provide technology used by multiple independent financial services. In Yan's framing, the same underlying infrastructure could support different market operators, each responsible for meeting the regulatory requirements that apply to its own activities. In other words, the network itself would not be the object of oversight; the firms running markets on top of it would be. This remains his preferred regulatory framework, however, not an established US regulatory classification for Hyperliquid.

Hyperliquid Wants to Support Wall Street Institutions

Yan also explained that Hyperliquid aims to provide infrastructure for traditional financial institutions rather than replace them. The network is designed to support trading activity through a shared blockchain-based system, in which financial firms could build services using Hyperliquid's technology while retaining responsibility for their own market operations.

Bloomberg reported that Payward, the parent company of Kraken, plans to offer derivatives — financial contracts whose value is tied to an underlying asset — to US investors using Hyperliquid technology through a regulated exchange. The reported plan illustrates how blockchain infrastructure could be integrated into traditional financial markets. It does not mean, however, that Hyperliquid itself has received authorization to serve US customers.

Hyperliquid remains unavailable to US users, and Payward's reported plans should not be interpreted as a change to that restriction. Details about the timing and structure of the planned derivatives offering remain important for understanding how it would operate — and how such an arrangement would fit within existing US financial rules.

Hyperliquid Founder Jeff Yan Says US Regulation Should Target Market Operators, Not the Underlying Blockchain Hyperliquid founder Jeff Yan told Bloomberg's Odd Lots podcast that US regulators should treat Hyperliquid's Layer 1 blockchain as financial infrastructure rather than a… pic.twitter.com/APajp44kY6 — Wu Blockchain (@WuBlockchain) October 15, 2026

Source: Wu Blockchain on X

What Hyperliquid US Regulation Could Mean for DeFi

The debate surrounding Hyperliquid and US regulation reflects a broader question facing decentralized finance: who should be responsible when financial services operate on blockchain networks?

Traditional exchanges generally operate under rules governing trading venues and market intermediaries. Blockchain networks can be structured differently, with infrastructure and market operations potentially handled by separate participants — a split that existing regulatory categories do not always capture clearly.

Yan argues that oversight should follow the entities exercising actual control over financial markets. In such a system, a blockchain network that does not itself run markets would be treated differently from a firm that launches and controls trading activity. The approach could allow institutions to use shared blockchain infrastructure while complying with the rules relevant to their activities. If it proceeds as reported, the Payward arrangement would illustrate that split in practice: Hyperliquid's network would supply the technology, while the operator behind the regulated exchange would carry the market-facing regulatory obligations.

Nevertheless, determining regulatory responsibility can be complicated when developers, operators and users have overlapping roles. US regulators would ultimately need to assess the specific activities and legal responsibilities involved.

For now, Yan's message is that Hyperliquid wants to become infrastructure for established financial institutions, not a replacement for Wall Street. His comments highlight an ongoing discussion about how existing financial regulations should apply to blockchain-based trading systems.