Hyperliquid Funds DeFi Policy Center With 1M HYPE Tokens

Hyperliquid has launched a new Washington based policy group backed by 1 million HYPE tokens worth about $29 million to push for clearer decentralized finance rules in the United States.

Key Takeaways

• Hyperliquid Policy Center launches in Washington to advocate for DeFi regulation.
• Backed by 1 million HYPE tokens, valued at roughly $29 million.
• Led by prominent crypto lawyer Jake Chervinsky.
• Focus includes regulation of perpetual futures and decentralized exchanges.

What Happened?

Hyperliquid has established the Hyperliquid Policy Center, a nonprofit research and advocacy group based in Washington. The initiative is funded by a donation of 1 million HYPE tokens from the Hyper Foundation, currently valued at around $29 million.

The new organization will focus on shaping U.S. regulations for decentralized finance, with particular attention on perpetual futures and blockchain based trading infrastructure.

A Strategic Move Into Washington

In less than three years, Hyperliquid has grown into one of the most active decentralized exchanges in the crypto market. The blockchain based platform processed more than $250 billion in perpetual futures trading volume last month, along with $6.6 billion in spot trading.

Now, the company is extending its influence beyond trading and into policymaking.

The Hyperliquid Policy Center aims to brief lawmakers, publish research, and advocate for regulatory frameworks tailored to decentralized systems. The launch comes as Congress and federal agencies debate how crypto trading platforms and derivatives markets should be overseen.

Lawmakers are currently negotiating broader crypto legislation, including discussions around stablecoin rewards and the advancement of the CLARITY Act. While some progress has been made under President Donald Trump’s administration to support digital asset growth, major regulatory questions remain unresolved.

Jake Chervinsky Takes the Lead

The center will be led by Jake Chervinsky, a well known crypto attorney and former policy head at the Blockchain Association. He has also held senior roles at Variant and previously worked at Baker McKenzie. Chervinsky remains an advisor to Variant and serves on the board of the Blockchain Association.

In a statement, Chervinsky said:

Chervinsky has also emphasized that existing regulatory frameworks were built for an analog era and may not properly address decentralized protocols that operate without a central intermediary.

Focus on Perpetual Futures

One of the center’s primary policy goals will be developing a legal framework for perpetual derivatives, commonly known as perps.

Perpetual futures allow traders to maintain leveraged positions without an expiration date. While they account for significant trading volume on offshore exchanges, they remain a gray area under U.S. law.

Hyperliquid operates a decentralized exchange that allows users to trade perpetual futures directly onchain, without routing transactions through a traditional broker or clearinghouse. Trades settle on blockchain rails rather than through centralized systems.

Chervinsky has argued that perpetual products can be simpler and provide more direct exposure compared to traditional options or futures contracts.

Growing Crypto Lobbying Efforts

The launch of the Hyperliquid Policy Center adds to an already crowded crypto policy landscape in Washington. Other organizations active in the space include the DeFi Education Fund, Solana Policy Institute, Digital Chamber, Blockchain Association, and Crypto Council for Innovation.

The Hyper Foundation stated that the 1 million HYPE tokens will be unstaked to support the center’s operations. Compared to other advocacy groups, the $29 million commitment stands out. Public filings show the Digital Chamber spent $5.6 million in 2024, while the Blockchain Association spent $8.3 million.

The foundation said the Hyperliquid community will benefit from representation in Washington and expressed confidence that the center will help push for clear rules for decentralized finance.

CoinLaw’s Takeaway

In my experience covering crypto policy, this is a significant step. Hyperliquid is not just building a trading platform, it is investing heavily to shape the rules that will govern the next phase of DeFi in the United States.

I found the $29 million commitment especially notable. That level of funding signals long term ambition. If U.S. regulators move toward clearer frameworks for decentralized exchanges and perpetual futures, Hyperliquid could be well positioned to benefit.

At the same time, Washington is already crowded with crypto advocacy groups. The real test will be whether the Hyperliquid Policy Center can translate technical expertise into legislation that actually works for decentralized systems.

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