#What is Hyperliquid doing in Washington?
Hyperliquid is actively engaging with U.S. policymakers as part of its effort to integrate onchain derivatives markets into the country's regulatory structure. Co-founder Jeff Yan is leading discussions focused on educating legislators about the technical workings of onchain trading, which represent a significant evolution in trading practices.
On February 18, Hyperliquid established the Hyperliquid Policy Center in Washington, led by Jake Chervinsky, who has a robust background in blockchain policy. The center's mission extends beyond just legislative meetings; it aims to create a pathway connecting decentralized finance trading with existing regulatory frameworks.
#Why is the CLARITY Act important?
One of the central topics at these discussions is the CLARITY Act, which has gained attention as a potential vehicle for facilitating the integration of onchain derivatives trading within U.S. regulations. Hyperliquid's team believes there is a genuine opportunity to address regulatory gaps and promote the benefits of onchain derivatives in a new policy landscape.
#How does Hyperliquid tackle criticism from traditional exchanges?
In addition to advocating for new regulatory frameworks, the Hyperliquid Policy Center is also tasked with responding to the criticisms levied by established exchanges like CME and ICE. These traditional venues often voice concerns regarding the risks associated with unregulated crypto trading platforms. Hyperliquid counters these arguments by highlighting the enhanced transparency offered by onchain trading systems. In such systems, every transaction, order, and liquidation is publicly verifiable, thereby fostering a level of accountability that traditional platforms struggle to match.