Hyperliquid Launches Policy Center to Champion DeFi in Washington

In a bold move that signals the crypto industry’s growing maturity, decentralized finance (DeFi) powerhouse Hyperliquid has unveiled a new advocacy organization aimed at reshaping financial regulation in the United States. The Hyperliquid Policy Center, launched Wednesday in Washington, D.C., represents a significant escalation in the blockchain sector’s efforts to secure a regulatory framework that accommodates innovation while addressing legitimate concerns about market stability and consumer protection.

The organization has recruited one of the crypto industry’s most respected legal minds, Jake Chervinsky, as founder and CEO. Chervinsky brings a formidable resume to the role, having served as legal head at crypto venture fund Variant and policy chief at the Blockchain Association, the Washington-based lobbying group that has become the de facto voice of the cryptocurrency industry on Capitol Hill.

A Strategic Launch at a Critical Juncture

The timing of the Policy Center’s launch is no accident. Congress is currently wrestling with comprehensive cryptocurrency legislation that would define how market regulators police digital assets, but the process has hit a wall in the Senate. Lawmakers, along with powerful crypto and banking lobbies, remain deeply divided over key provisions, particularly those governing stablecoins.

“The United States stands at a crossroads,” Chervinsky said in a statement announcing the launch. “Traditional finance companies are increasingly launching blockchain-based products and services because this technology offers efficiency, transparency, and resilience that legacy systems simply cannot match. This technology is poised to become the base layer of the global financial system.”

Chervinsky’s message is clear: either the U.S. adopts forward-thinking regulations that allow DeFi innovation to flourish domestically, or it risks watching other nations seize the opportunity and establish themselves as global financial technology leaders.

A Token-Fueled Launch

The Hyper Foundation, an independent entity that supports the Hyperliquid ecosystem, has committed 1 million HYPE tokens to fund the Policy Center’s initial operations. This substantial financial backing underscores the organization’s seriousness and provides it with the resources needed to compete in Washington’s expensive policy arena.

The token commitment also represents a novel approach to advocacy funding in the crypto space, blending traditional nonprofit advocacy with the token economics that underpin decentralized platforms. This hybrid model could become a template for other blockchain projects seeking to engage in policy discussions.

A Specialized Focus on Perpetual Derivatives

What sets the Hyperliquid Policy Center apart from other crypto advocacy organizations is its specialized focus. While groups like the Blockchain Association and Coin Center take broader approaches to crypto policy, Hyperliquid is zeroing in on perpetual derivatives and blockchain-based financial infrastructure.

Perpetual futures contracts—a type of derivative that has become increasingly popular in crypto markets—are at the heart of Hyperliquid’s business model. The platform has seen explosive growth as traders have flocked to commodities trading amid broader market volatility, with open interest recently hitting $793 million on commodities trades alone.

A Team of Heavy Hitters

Beyond Chervinsky’s leadership, the Policy Center has assembled an impressive team of policy veterans. Salah Ghazzal, formerly Variant’s policy lead, joins as policy director, bringing deep expertise in regulatory affairs and a network of relationships within Washington’s policy community.

Brad Bourque, a former associate at Sullivan & Cromwell—the prestigious law firm that represented FTX before its collapse—rounds out the legal team as policy counsel. While Sullivan & Cromwell’s involvement with FTX has drawn scrutiny, Bourque’s experience with complex financial regulation could prove valuable as the Policy Center navigates the intricate landscape of financial oversight.

Hyperliquid’s Meteoric Rise

The launch of the Policy Center comes at a moment of unprecedented growth for Hyperliquid. The platform, which operates both as a layer-1 blockchain and a perpetual futures exchange, has captured significant market share as traders seek alternatives to traditional exchanges.

Recent data shows that Hyperliquid’s volume has surged as traders pivot toward commodities trading during the current market downturn. The platform is also looking to expand into prediction markets, a move that could further differentiate it from competitors and create new regulatory challenges that the Policy Center will need to address.

Washington’s Crypto Policy Battleground

The Policy Center’s launch reflects a broader recognition within the crypto industry that engagement with policymakers is no longer optional. As former Commodity Futures Trading Commission Chairman Chris Giancarlo noted in a recent interview, “The era of crypto companies trying to avoid regulation is over. The question now is whether we can craft rules that protect consumers while allowing innovation to flourish.”

This sentiment is echoed by Hyperliquid co-founder and CEO Jeff Yan, who described the current moment as a “critical time in policy discussions” in the United States. “Until now, we have lacked a unified voice in these important policy discussions,” Yan said on social media platform X.

The Stakes for American Financial Leadership

The Policy Center’s advocacy comes at a pivotal moment for American financial leadership. Other nations, particularly in Asia and Europe, have moved aggressively to establish themselves as hubs for blockchain innovation. Singapore, Switzerland, and the United Arab Emirates have all implemented regulatory frameworks designed to attract crypto businesses.

“If the United States fails to act decisively,” Chervinsky warned, “we risk ceding our position as the global leader in financial innovation to countries that are more willing to embrace new technologies.”

A New Model for Crypto Advocacy

The Hyperliquid Policy Center represents a new model for crypto advocacy—one that combines the resources and focus of a corporate-backed initiative with the policy expertise and Washington access of traditional advocacy organizations. This hybrid approach could prove more effective than either pure industry associations or individual company lobbying efforts.

The organization’s emphasis on perpetual derivatives and blockchain financial infrastructure also suggests a more sophisticated understanding of the technology’s potential than many traditional policymakers possess. By focusing on these specific areas, the Policy Center can develop deep expertise that generalist advocacy groups may lack.

Looking Ahead

As the Policy Center begins its work, the crypto industry will be watching closely to see how effectively it can influence the legislative process. The organization’s success could determine not only Hyperliquid’s future but also the broader trajectory of DeFi regulation in the United States.

The coming months will be critical as Congress continues to debate cryptocurrency legislation. With the Policy Center now in the fray, the debate over DeFi’s future in America has become more complex—and potentially more productive.

Tags: Hyperliquid Policy Center, Jake Chervinsky, DeFi regulation, cryptocurrency advocacy, perpetual futures, blockchain policy, Washington lobbying, HYPE tokens, crypto legislation, financial innovation, decentralized finance, commodities trading, prediction markets, regulatory framework, U.S. crypto policy

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