Binance founder Changpeng Zhao has publicly supported President Donald Trump’s proposal to bring Hyperliquid, a leading decentralized perpetuals platform, legally into the United States. On X, Zhao argued that establishing a compliant framework for Hyperliquid could set a valuable precedent for the broader cryptocurrency sector.
Industry leaders weigh in on Hyperliquid’s potential impact
Content creator Jake Gagain echoed these sentiments and wrote, “This is not just about Hyperliquid. There will be so many Perp DEXs and decentralized services available to U.S. users. This is hugely positive for everyone in the industry.”
During a White House meeting with technology and crypto executives on August 19, President Trump announced that the government is actively seeking legal avenues to bring Hyperliquid onshore. Trump specifically recognized Commodity Futures Trading Commission (CFTC) Chairman Michael Selig for leading these efforts.
“I understand Mike [Selig] is also working to bring Hyperliquid into the United States in a fully compliant and legal fashion,” Trump said, addressing an audience that included top executives from Ripple, Coinbase, Robinhood, Kraken, and Nasdaq, along with regulators Paul Atkins from the Securities and Exchange Commission (SEC) and Michael Selig from the CFTC.
Hyperliquid stands as a major on-chain decentralized exchange specializing in leveraged perpetual contracts. Currently, US residents are listed as restricted users on the platform’s terms.
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AAPLIn a June appearance on the Bankless podcast, CFTC Chairman Selig shared that Hyperliquid’s technology could significantly reshape financial markets in the US. He stated, “We want to create a path to bring these onchain markets into the United States and make sure they comply with some form of regulation.”
Mini dictionary: Hyperliquid is a decentralized perpetuals exchange (Perp DEX) where users trade leveraged contracts directly on-chain, bypassing centralized platforms. Perpetual contracts are derivatives that do not have an expiration date but track the price of underlying assets like cryptocurrencies.
Policy changes and regulatory outlook
In a follow-up post on X, Zhao emphasized that regulatory policy should apply universally across the industry. He warned against creating frameworks aimed at specific projects and stressed, “Many people miss the bigger picture. Policy cannot be applied to only one company or project. What’s good for one is good for the rest of the industry.”
Zhao reiterated the importance of industry-wide clarity, noting that frameworks designed for a single entity inevitably influence the regulatory environment for all participants.
Hyperliquid has engaged with US regulators in recent months. The platform, supported by the Hyper Foundation, established the Hyperliquid Policy Center to carry out policy research in Washington, D.C., aiming to enable the legal use of on-chain perpetual contracts.
At present, US regulations pose significant barriers for Hyperliquid. While perpetual contracts are not explicitly illegal, they remain incompatible with the Commodity Exchange Act’s guidelines for execution and clearing. This regulatory disconnect continues to limit Hyperliquid’s access to the American market.
However, the CFTC approved a spot Bitcoin perpetual contract in May and announced plans to review cases for other assets individually. In June, the CFTC sought public feedback regarding continuous 24/7 trading of traditional futures and the introduction of perpetual contracts for physical assets, such as crude oil.
| Month | Regulatory Development |
|---|---|
| May | CFTC approves spot Bitcoin perpetual contract |
| June | CFTC opens consultation on 24/7 futures trading and perpetual contracts for physical assets |
Implications for decentralized derivatives and future regulation
A regulated debut of Hyperliquid would represent a transformative milestone for both the platform and decentralized finance overall. Hyperliquid’s model allows users to access leveraged derivatives without relying on centralized exchanges, which has complicated compliance with US regulations.
Success in bringing Hyperliquid into the US under regulatory oversight could open the door for other decentralized finance projects to pursue legal status. This move would also encourage crypto developers to design products that meet US compliance requirements, rather than excluding local users altogether.
Industry watchers see the Hyperliquid case as a potential benchmark that could shape how American regulators approach other on-chain platforms in the future.
Trump advocates for the CLARITY Act
During the same White House event, President Trump fielded questions about whether the US government plans to acquire Bitcoin, referencing the SEC for further information.
Trump also urged lawmakers to advance the long-delayed CLARITY Act, describing it as “very powerful, structured legislation” that would help the US maintain a technological edge over countries like China.
