Hyperliquid Founder Proposes Regulating Market Operators, Not Blockchains

The proposal reframes a familiar DeFi debate: whether compliance attaches to code or to the entities that commercialize it. That distinction matters most for offshore venues courting US institutional flow, since it would let a base layer stay permissionless while regulated intermediaries absorb the obligations. Yan's comments land as US regulators are still deciding how to treat offshore trading venues, so the practical question is whether that split — protocol neutral, operator accountable — becomes the template regulators accept, or whether they insist on obligations reaching the underlying infrastructure.