Hyperliquide, the popular perpetual DEX platform, unveiled a lobby group ahead of the US elections.
In a statement, lobby group Hyperliquid Policy Center (HPC) said it sought to “answer the toughest policy questions facing perpetual derivatives and decentralized finance (DeFi) markets.”
He added,
“We will bridge the gap between law and next-generation market infrastructures. »
The project announced that it would unlock 1 million HYPE tokens to fund the advocacy team. As of press time, that would translate to about $29 million.
Longtime pro-cryptocurrency lawyer and DeFi advocate Jake Chervinsky will lead HPC.
According to the project, the move could help chart a smooth path forward and cover regulatory risks from U.S. regulators.
Commenting on the same, Hyperliquide founder Jeff Yan said,
“Democratizing finance requires education and advocacy for laws that protect both users and builders. »
He added,
“Global financial regulation will be shaped in the United States, and we must ensure that these new policies thoughtfully incorporate the potential of the new financial system enabled by hyperliquidity. »
Community reactions
Hyperliquide has been online for about three years now. However, it is already exceeding incumbents like Binance and Coinbase in crypto perpetual markets and other metrics.
In fact, the platform has expanded into non-crypto assets which now represent over 30% of its overall trading volume.
With a cumulative income With over $1 billion and nearly $4 trillion in perpetual volumes, Hyperliquide has clearly become a crypto success story.
Source: DeFiLlama
But behind the growth story, there has been speculation that most of the platform’s traders could be conducting regulatory arbitration for tax evasion or even circumventing sanctions.
For critics, these allegations could pose a regulatory risk for Hyperliquide if the Department of Justice (DoJ) or the US Treasury comes to the door. In fact, Hyperliquid supporters agreed that the platform’s growth could be derailed by either the DoJ investigation or a security breach.
In addition, the market is factoring in an increase chance Democrats regaining control of Congress in the 2026 midterms.
If so, the previous anti-crypto movement could resurface and exacerbate Hyperliquid’s regulatory risk. And to some extent, this may partly explain the lobby’s recent decision.
Ryan Scott, trader and analyst, echoes a similar position and added,
“The reason is clear. Hyperliquid is not regulated or attached to a regulated entity. They are preparing for the arrival of the Democrats and their havoc.”
It remains to be seen whether this move will eliminate the perceived regulatory risk for the platform.
Final summary
- Hyperliquid has unveiled an advocacy arm, Hyperliquid Policy Center, to promote DeFi regulatory clarity ahead of the US elections.
- Analysts believe the platform could prepare for any changes in Congress, especially if anti-crypto Democrats regain control.
