Jeff Yan told Bloomberg that U.S. regulations should apply to companies using blockchain, rather than to the underlying networks themselves.

Hyperliquid Founder Jeff Yan stated that US regulatory authorities should supervise financial companies operating on blockchain, rather than the networks themselves.

The proposal from Yan could enable Wall Street firms to establish regulated trading operations on Hyperliquid without the need to register this blockchain as an exchange.

Kraken The parent company plans to offer derivatives using Hyperliquid technology to American investors through a regulated exchange, despite the fact that the perpetual contract market of Hyperliquid is still closed to them.

Hyperliquid Founder Jeff Yan hopes that US regulatory authorities will supervise financial companies using his blockchain, rather than the network itself.

In an interview with Bloomberg on Thursday, Yan stated that companies operating trading markets on Hyperliquid should be responsible for meeting regulatory requirements, just as financial companies that use internet infrastructure are.

Yan said, "Regulation exists at the level of those with control, but in reality, it is the deployers who exercise that control."

Hyperliquid is best known for its eponymous perpetual futures trading platform, but this platform remains closed to American customers.

However, Payward, the parent company of Kraken, plans to offer derivatives using Hyperliquid technology to American investors through a regulated exchange. For Hyperliquid, this means that even if its perpetual contract market is still not open to American customers, it may gain an additional operator that is regulated by the Commodity Futures Trading Commission (CFTC).

The proposal of Yan will allow Wall Street companies to establish trading operations on Hyperliquid, without the need for the blockchain itself to operate as a regulated exchange.

Yan said, "We are not trying to replace anything. In fact, I believe this technology can benefit everyone who currently operates in the market in a more traditional way."

His remarks came after U.S. President Donald Trump stated in August that CFTC was making efforts to bring Hyperliquid under federal regulation and into the United States.