Hyperliquid, a DeFi platform, has opened a new policy hub in Washington, DC, on February 18—backed by 1 million HYPE tokens, valued at around $28 million. The policy center aims to give the digital asset industry a sustained, institutional voice in the ongoing US regulatory process. At the helm is attorney Jake Chervinsky, a veteran strategist for the crypto sector on Capitol Hill.
Uncertainty Surrounds Perpetual Derivatives Rules
The Hyperliquid Policy Center will zero in on clarifying the legal status of perpetual derivatives—a mainstay in DeFi protocols—within the United States. Hyperliquid’s protocol processed $256 billion in perpetual futures volume in the last month alone, with open positions exceeding $5 billion. Yet, because these leveraged products have no expiry date, US regulators still haven’t fully classified them. The Commodity Futures Trading Commission has previously targeted platforms like bZeroX and Ooki DAO for illegal digital asset derivatives activity, underscoring the urgent need for regulatory clarity in this area.
Progress and Gaps in US Crypto Legislation
Treasury Secretary Scott Bessent has indicated his expectation that Congress will pass comprehensive crypto market structure legislation by spring 2026. The CLARITY Act, approved by the House in 2025, introduces federal rules for digital commodity exchanges and intermediaries but leaves out derivatives. As a result, the fate of leveraged derivatives remains hotly debated. Meanwhile, the GENIUS Act, which took effect the same year, established stablecoin regulations. Looking ahead, Standard Chartered predicts a sharp surge in stablecoin issuance in the coming years.
Crypto Lobbying Spend Hits Record High
In 2025, the US digital asset sector’s lobbying expenditure soared by 66% to reach $40.6 million, ranking just after traditional finance’s $86.8 million. The $28 million allocation to Hyperliquid’s policy center surpasses the annual budgets of most crypto advocacy groups. Stalwarts like the Digital Chamber and Blockchain Association are now outspent by Hyperliquid’s single initiative.
Hyperliquid isn’t alone—since 2021, the DeFi Education Fund has advanced similar policy goals. In November 2025, Ethereum-aligned protocols founded the Ethereum Protocol Advocacy Alliance, and the Solana Policy Institute is also active in federal blockchain policy. These organizations have matured into 501(c)(4) entities, complete with full-time staff and advisory programs, reflecting the sector’s rapid institutionalization.
Strategic Policy Approaches and Possible Outcomes
DeFi platforms are increasingly competing not just on liquidity and user experience, but on regulatory and policy influence as well. With new federal bills expressly excluding derivatives, US-based protocols may soon face pressure to adopt KYC, oversight, and transparency measures. If lawmakers fail to provide clarity, there’s growing concern regulators could target protocol operators and governance participants directly.
Looking forward, three key scenarios are emerging. In the first, new rules advance swiftly, US interfaces come into compliance, yet global access to DeFi protocols remains. In the second, mounting regulatory pressure fuels an exodus of American users abroad and fragments market liquidity. The third scenario envisions legislative gridlock, leaving derivatives in a gray zone and driving market share to overseas platforms.
After years in which the crypto sector sought to “outrun” regulation, institutional lobbying and lawmaker engagement have now moved to center stage. The launch of Hyperliquid’s policy center reflects the industry’s adaptation to this new environment—focusing collective resources on shaping policy rather than avoiding it.
