Hyperliquid (HYPE)

The CFTC and SEC have been an incredibly strong positive force since Michael Selig and Paul Atkins took over in collaboration with Project Crypto. One of the main things to pay attention to over the next 12 months is the on-shoring of liquidity that has fled from the U.S. to access off-shore derivative platforms. Hyperliquid will play a key role in this but I am still trying to work out what the end state looks like for on-shoring into the US. It's an incredibly important market and Jeff said publicly that Hyperliquid will play an important role here as perpetuals get the green light from the CFTC. You also have the likes of Unit Labs the largest HIP-3 DEX who have recently met with the CFTC. Regulatory clarity and on-shoring to the U.S. opens the flood gates for Institutional flow. But I do expect that Hyperliquid will require KYC/AML for allowing U.S. citizens/Institutions to access HyperCore orderbooks. Ultimately this is the goal of the Hyperliquid Policy Center with the aim of collaboration with the CFTC but also adhering to the principles and benefits of decentralized financial markets. But I would expect that on-shoring will require KYC for both citizens and institutions. If anyone has any comments on what an end state would look like for Hyperliquid on-shoring to the US feel free to post below.

Another thought from me that hypothetically if there was U.S. KYC would this require two HyperCore orderbooks one in which has liquidity for KYC U.S. traders and the other being global access. I'm also not sure on what the above looks like.

Some notes from claude on the topic: > Under the "Tokenization Innovation Exemption" (expected late Q2 2026), a platform could theoretically use its DCM/SEF license to act as a Regulated Gateway rather than a siloed exchange. > Instead of building a new orderbook, a U.S. entity would provide a KYC/AML-compliant "on-ramp" that routes orders directly into the Global Hypercore L1. > For this to be legal, the CFTC would need to grant "Substituted Compliance" or a "DCO-Lite" status to the Hyperliquid validator set. This would mean the U.S. government accepts the on-chain clearing and settlement of Hypercore as being "functionally equivalent" to a traditional U.S. Clearinghouse (DCO). > hairman Selig’s recent comments regarding "recapturing liquidity" suggest he favors this model to ensure U.S. price discovery remains relevant in the $4+ trillion Hyperliquid market. Maybe they onboard via Native Markets and USDH?

@fiege_max what we thinking champ

> USDH reserve managed by BlackRock and Superstate plus partnered with JPM and Lead Bank > USDH fully GENIUS Act compliant stablecoin > KYC required for on/off ramping It sounds like U.S. Institutions onboarding to Hyperliquid will onboard through Native Markets and USDH. Native Markets x Hyperliquid Policy Centre is the US Master Plan? plz confirm thanks