Hyperliquid Foundation Launches New Initiative to Shape DeFi Regulations
The Hyperliquid (HYPE) Foundation has taken a significant step toward reshaping the future of decentralized finance (DeFi) in the United States. On Wednesday, the foundation announced the establishment of the Hyperliquid Policy Center (HPC), a Washington, D.C.-based organization. This center is dedicated to pushing for clearer federal regulations that govern the rapidly evolving DeFi landscape.
Advertisement Banner
Leadership Under Jake Chervinsky
Jake Chervinsky, renowned for his expertise and leadership in the blockchain industry, will spearhead the Hyperliquid Policy Center. Chervinsky has previously played pivotal roles at the Blockchain Association and the venture capital firm Variant. As the first CEO of HPC, he will be instrumental in navigating the complexities of engaging with lawmakers and regulatory bodies during a critical period of policy transformation in digital assets.
During an interview with Fortune, Chervinsky highlighted the crucial moment the United States faces regarding the integration of decentralized finance into its existing financial systems. He emphasized that the center aims to assist Congress members and federal agencies in comprehending the operational mechanics of DeFi protocols. By offering technical insights, HPC intends to facilitate the creation of rules that align with the innovative nature of DeFi technologies.
Advancing the Understanding of Perpetual Derivatives
One of the core objectives of the Hyperliquid Policy Center is to establish a robust legal framework for perpetual derivatives, commonly referred to as “perps.” These financial instruments, which lack expiration dates, are a staple in offshore crypto exchanges and contribute significantly to global digital asset trading. Chervinsky argues that perpetuals present advantages over traditional financial products like options and futures, due to their simplicity and direct asset exposure.
Despite their global popularity, perpetual derivatives have yet to achieve widespread acceptance within the U.S. financial sector, primarily due to existing regulatory ambiguities. The HPC aims to bridge this gap by promoting a better understanding and acceptance of these instruments.
Financial Backing and Leadership Expansion
The Hyperliquid Foundation is committing 1 million HYPE tokens to fund this initiative. With each token valued at $28.75, this contribution amounts to an impressive $28.7 million investment in the future of DeFi regulation.
Joining Chervinsky in this endeavor are Policy Counsel Brad Bourque, with a background at Sullivan & Cromwell LLP, and Policy Director Salah Ghazzal, formerly Variant’s Policy Lead. Together, they form a formidable team poised to drive regulatory progress. The center is also actively recruiting for strategic positions such as Chief of Staff, Head of Communications, and Head of Government Relations to strengthen its leadership.
Commitment to Editorial Integrity
At bitcoinist, our editorial process prioritizes delivering well-researched, accurate, and unbiased content. Our team of top technology experts and seasoned editors rigorously reviews each page, ensuring the integrity, relevance, and value of the information we provide to our readers.
