Hyperliquid (HYPE), a blockchain-based decentralized exchange that processed over $250 billion in perpetual futures trading volume last month, has launched the Hyperliquid Policy Center in Washington, D.C. The new nonprofit lobbying and research arm aims to shape how U.S. lawmakers regulate decentralized finance (DeFi), with a specific focus on decentralized exchanges, perpetual futures, and blockchain-based market infrastructure.
The organization is led by Jake Chervinsky, a prominent crypto lawyer and former policy head at the Blockchain Association, who will serve as founder and CEO. The launch comes at a critical time as Congress and federal agencies debate oversight frameworks for crypto trading platforms and derivatives markets. Perpetual futures, which allow leveraged positions without expiration dates, are widely traded on offshore venues but remain a regulatory gray area in the United States.
The Hyper Foundation, which supports the Hyperliquid ecosystem, is contributing 1 million HYPE tokens (worth approximately $29 million) to fund the center's launch. This funding surpasses the 2024 lobbying expenditures of established groups like the Digital Chamber ($5.6 million) and the Blockchain Association ($8.3 million), though it is less than the commitment made to the Ripple-backed National Cryptocurrency Association last year.
A near-term objective for the center is to define how decentralized perpetual derivatives could fit within U.S. regulatory frameworks, potentially influencing market access, disclosures, and risk controls. "We're in a moment where the U.S. faces a large challenge to rewrite the rules for the new chapter of DeFi," Chervinsky stated. He emphasized that the U.S. must choose whether to adopt new rules that allow innovation to flourish domestically or risk ceding leadership to other nations.
The policy group plans to brief lawmakers, publish technical research, and advocate for rules tailored to decentralized systems. Its work is expected to engage with regulators like the Commodity Futures Trading Commission (CFTC) and focus on explaining on-chain market design and the unique risks of automated liquidations.
The launch coincides with growing institutional interest in the Hyperliquid ecosystem. Lion Group Holding recently reallocated part of its treasury from Solana (SOL) and Sui (SUI) into HYPE tokens following a U.S. institutional custody milestone, citing Hyperliquid's on-chain order book and infrastructure as key reasons. Additionally, Hyperion DeFi has launched institutional-grade yield-vault strategies on the platform.
The Hyperliquid Policy Center enters a crowded Washington crypto-policy scene, joining organizations like the DeFi Education Fund, Solana Policy Institute, Digital Chamber, Blockchain Association, and Crypto Council for Innovation. Its launch occurs as negotiations are underway on Senate legislation that may set U.S. DeFi policy.
