Hyperliquid, the popular perpetual DEX platform, has unveiled a lobby group ahead of the U.S elections.
In a statement, the lobby, Hyperliquid Policy Center (HPC), said that it seeks to “answer toughest policy questions facing perpetual derivatives and decentralized financial (DeFi) markets.”
It added,
“We will bridge the gap between law and next-generation market infrastructure.”
The project said it will unstake 1 million HYPE tokens to fund the advocacy outfit. As of the press time, that would translate to approximately $29 million.
Long-time pro-cryptocurrency lawyer and DeFi advocate, Jake Chervinsky, will lead HPC.
According to the project, the move could help set a smooth path forward and cover the regulatory risks from U.S regulators.
Commenting on the same, Hyperliquid Founder Jeff Yan said,
“Democratizing finance requires education and advocacy for laws that protect users and builders alike.”
He added,
“Global financial regulation will be shaped in the United States, and we must work to ensure that these new policies thoughtfully embrace the potential of the new financial system enabled by Hyperliquid.”
Hyperliquid has been live for about three years now. However, it is already outpacing incumbents like Binance and Coinbase on crypto perpetual markets and other metrics.
In fact, the platform has expanded to non-crypto assets that now account for over 30% of its overall trading volume.
With a cumulative revenue of over $1 billion and nearly $4 trillion in perpetual volumes, Hyperliquid has clearly become a crypto success story.
But beneath the growth story, there’s been speculation that most traders on the platform could be running a regulatory arbitrage for tax evasion or even bypassing sanctions.
For critics, these allegations could be a regulatory risk for Hyperliquid if the Department of Justice (DoJ) or the U.S Treasury comes knocking. In fact, Hyperliquid supporters agreed that the platform’s growth could be derailed either by the DoJ probe or a security breach.
Besides, the market is pricing an increasing chance of Democrats retaking control of Congress in the 2026 midterms.
If so, the previous anti-crypto movement may resurface and exacerbate Hyperliquid’s regulatory risk. And to some extent, this may partially explain the recent lobby move.
Ryan Scott, a trader and analyst, echoed a similar stance and added,
“It is clear why. Hyperliquid is not regulated or attached to any regulated entity. They are prepping for the Dems to come in and cause havoc.”
It remains to be seen whether the move will clear the perceived regulatory risk to the platform.
