Hyperliquid, a leading decentralized perpetual exchange, has launched a $29 million lobby group ahead of U.S. elections. The Hyperliquid Policy Center, led by lawyer Jake Chervinsky, aims to address regulatory questions for DeFi. The move is seen as a preparation for potential political shifts, as the platform faces speculation over its regulatory risks despite significant trading volumes.
The popular perpetual DEX platform Hyperliquid has unveiled a lobby group, the Hyperliquid Policy Center (HPC), ahead of the U.S. elections. In a statement, the lobby said it seeks to “answer [the] toughest policy questions facing perpetual derivatives and decentralized financial (DeFi) markets.”
The project added that it will “bridge the gap between law and next-generation market infrastructure.” To fund the advocacy outfit, Hyperliquid will unstake 1 million HYPE tokens, valued at approximately $29 million at the time of the announcement.
Long-time pro-cryptocurrency lawyer and DeFi advocate Jake Chervinsky will lead HPC. Hyperliquid Founder Jeff Yan stated, “Democratizing finance requires education and advocacy for laws that protect users and builders alike.”
He further said, “Global financial regulation will be shaped in the United States, and we must work to ensure that these new policies thoughtfully embrace the potential of the new financial system enabled by Hyperliquid.” The platform has generated over $1 billion in cumulative revenue and nearly $4 trillion in perpetual trading volume.
Beneath its growth, there has been speculation that some traders may be using the platform for regulatory arbitrage. Analysts believe the lobby move prepares for potential regulatory scrutiny, especially if anti-crypto Democrats retake Congress.
Trader and analyst Ryan Scott echoed this stance, noting, “It is clear why. Hyperliquid is not regulated or attached to any regulated entity. They are prepping for the Dems to come in and cause havoc.” It remains to be seen whether the new advocacy effort will mitigate the platform’s perceived regulatory risks.
