Hyperliquid founder Jeff Yan advocates for US regulation of market operators, not blockchain

Payward: Payward serves as the parent company of the Kraken cryptocurrency exchange and maintains regulated subsidiaries including Bitnomial. It has confirmed plans to deploy and operate derivatives markets on Hyperliquid's blockchain for eligible US investors through compliant channels. The initiative positions Payward to leverage the protocol while holding regulatory responsibilities. Jeff Yan: Jeff Yan is the founder and CEO of Hyperliquid Labs. In a recent interview on Bloomberg's Odd Lots podcast, he outlined a regulatory framework distinguishing the underlying blockchain from market operators. Yan emphasized Hyperliquid's role in providing infrastructure for traditional financial institutions. Hyperliquid: Hyperliquid operates a Layer 1 blockchain designed as shared infrastructure for liquidity and trading markets. Its founder Jeff Yan recently advocated on Bloomberg's Odd Lots podcast for US regulators to treat the network as financial infrastructure rather than a traditional exchange. This approach would allow the protocol to support Wall Street institutions without direct exchange-level obligations. Regulatory Approach: US regulators are evaluating methods to incorporate offshore cryptocurrency platforms into domestic frameworks by focusing oversight on entities that control and operate markets on public blockchains. Infrastructure Focus: Hyperliquid aims to function as neutral trading and liquidity infrastructure supporting Wall Street participants rather than competing directly with traditional institutions. Partnership Initiative: Payward has outlined plans to use Hyperliquid technology for offering derivatives to US investors via its regulated exchange and clearing entities.