Hyperliquid Co-Founder Jeff Yan Says Regulation Should Target Service Operators, Not Blockchain Networks
Summary
- Jeff Yan, co-founder of Hyperliquid, said blockchain is simply infrastructure and that regulation should be imposed on service providers.
- He compared blockchain to internet infrastructure and said it is only a technology that provides liquidity and transaction processing, while regulatory responsibility should fall on the entities that actually operate markets.
- Yan said he is pursuing a plan to develop Hyperliquid into infrastructure that supplies trading technology to financial institutions like AWS, rather than replacing Wall Street firms.
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Jeff Yan, co-founder of Hyperliquid, said regulatory obligations should fall on service providers rather than on blockchain networks themselves.
In an interview on Bloomberg’s Odd Lots podcast on Oct. 15, Yan said financial service providers that operate markets and exercise control over them should be responsible for complying with regulations, not the blockchain networks those services run on.
He likened blockchain to internet infrastructure. As a technology that provides liquidity and transaction processing, blockchain itself should not bear the regulatory burden traditionally applied to trading platforms, he said. That responsibility should rest with the entities that actually operate the market.
Yan also emphasized that Hyperliquid’s goal is not to replace Wall Street financial institutions. Instead, he said the company aims to provide trading technology to financial firms much as Amazon Web Services provides computing infrastructure to businesses. “We are seriously working to develop Hyperliquid into infrastructure that supports a range of financial markets,” Yan said.
