Hyperliquid-linked assets rallied on Friday after the U.S. Securities and Exchange Commission issued temporary exemptive relief allowing Tokenized Securities Venues to trade tokenized National Market System stocks on public, permissionless blockchains using automated market makers and liquidity pools. Hyperliquid Strategies shares, trading under the ticker PURR, rose about 8% to $13.82 in premarket action, while the HYPE token climbed to $88, near its all-time high.
The SEC’s five-year Innovation Exemption arrives after the CLARITY Act failed to advance in the Senate. SEC Chairman Paul Atkins said the decision is designed to bring U.S. capital markets “into the digital age.” Under the conditions, tokenized stocks must carry the same shareholder rights as traditional shares, including dividend and voting entitlements. Smart contracts must be public, auditable, and deployed on permissionless networks. Issuers may block their stock from trading on a Tokenized Securities Venue, trading halts on the primary exchange must apply to tokenized versions, and venues must be U.S. persons complying with OFAC sanctions requirements.
Market participants view Hyperliquid as a direct beneficiary because its decentralized exchange infrastructure and auditable smart-contract design align closely with the SEC’s requirements. Bernstein analysts had predicted the SEC and CFTC would move “aggressive and swift” on rulemaking after the CLARITY Act stalled, and Thursday’s order was the first concrete sign of that shift.
Hyperliquid’s on-chain activity has strengthened alongside the regulatory news. DeFi Llama data showed perpetual futures volume above $240 billion over 30 days, more than major rivals combined. The platform generated more than $38 million in fees this month and $579 million year-to-date, with fees used to accumulate HYPE. Its layer-1 network holds over $6.8 billion in stablecoins, and staked HYPE yields around 2.23% annually. Hyperliquid Strategies owns more than 33.6 million HYPE tokens, worth about $2.9 billion, creating potential staking revenue near 750,000 HYPE per year.
Analysts maintain a Buy consensus on PURR with an average price target of $19.80. Cantor Fitzgerald raised its target to $34.20, Compass Point initiated with a Buy and an $18 target, and Chardan Capital set a $17 target. PURR is the sole holding in the Bitwise Hyperliquid ETF and Grayscale Hyperliquid Staking ETF, making ETF flows a direct driver for the stock. The next earnings report is expected around November 12, with estimates of 12 cents EPS and $9.78 million revenue. Key technical levels include resistance at $14.00 and $14.14, with support near $11.60.
