From 24/7 Wall St. · Sam Daodu · · 2m
Hyperliquid CEO Explains US Access for HYPE
Hyperliquid CEO Jeff Yan details legal US trading conditions for HYPE, but timeline remains unclear.
In brief
Hyperliquid CEO Jeff Yan details legal US trading conditions for HYPE, but timeline remains unclear. Hyperliquid's CEO says US users could legally trade on the platform once regulators understand on-chain tech, but HYPE holders face uncertainty as prices drop. Originally reported by 24/7 Wall St..
Hyperliquid CEO Clarifies US Access
Jeff Yan, Hyperliquid's co-founder and CEO, explained Americans using a VPN to access the exchange violate its terms of service.
Legal Access Requires CFTC Approval
Yan stated legal access for US users won't be possible until regulators clearly understand on-chain technology and determine it aligns with CFTC principles.
USD Coin as Example
Yan highlighted USD Coin (USDC) as an example where user balances match the USDC held at a specific address, showing customer funds without intermediaries.
HYPE Trading Decline
HYPE is trading around $80, down 8.3% over the past week and 14.2% over the past month, 18.4% below its peak of $98.
Hyperliquid's Perpetual Futures Exchange
Hyperliquid runs a perpetual futures exchange outside the US, where traders pay small periodic funding fees to keep contracts aligned with spot prices.
HIP-3 Feature for Developers
Hyperliquid offers HIP-3, enabling external developers to launch perp markets by staking 500,000 HYPE (approximately $40 million) for at least 183 days.
US Users Classified as Restricted
Hyperliquid designates US users as 'Restricted Persons' and blocks them from accessing the exchange due to lack of US licensing.
Fees Channel Into HYPE Buybacks
Hyperliquid allocates 99% of trading fees to daily open-market purchases of HYPE through the Assistance Fund, which acquired 44.4 million HYPE valued at $2.2 billion.
USDC Collateral Earning Interest
Hyperliquid holds $5 billion in USDC as collateral, earning 3.5% to 4% interest, with 90% of this income going back into the Assistance Fund.
Yan's Comments Fall Short
Yan's comments do not commit Hyperliquid or the CFTC to specific regulatory meetings, timelines, or US-friendly versions of the platform.
Current US Trading Options
Americans already have a compliant option through Coinbase Financial Markets, which offers futures accounts protected under CFTC regulations.
HYPE Holders Face Uncertainty
HYPE holders may face prolonged uncertainty as prices continue declining without clear regulatory progress from the CFTC.
The takeaway
Hyperliquid's CEO says US users could legally trade on the platform once regulators understand on-chain tech, but HYPE holders face uncertainty as prices drop.
