The Hyperliquid Policy Center (HPC) praised Securities and Exchange Commission (SEC) Chair Paul Atkins on Friday for what it described as an ambitious effort to improve clarity for on-chain markets.
SEC’s On-Chain Guidance AgendaLooking ahead, he noted that while the SEC may consider a limited “innovation pathway” soon, he also argued the agency should think about what a future-proof framework could look like.
In his view, that framework would take the form of notice-and-comment rulemaking, and it would specifically address how the SEC’s “exchange” definition applies to on-chain trading systems.
A third area of emphasis was the definition of a “clearing agency” as it applies to on-chain clearing and settlement. Atkins said rulemaking may be necessary to confirm which general-purpose activities fall outside that definition.
He said the Commission should address the relevant Securities Act and Advisers Act touch-points as it considers these policy initiatives.
Why Hyperliquid Policy Center Finds It PromisingHe argued that while the SEC intends to “future-proof” its efforts through notice-and-comment rulemaking, there is “no more powerful” future-proofing mechanism than enshrining well-designed statutory language in law.
The Hyperliquid Policy Center, led by Jake Chervinsky, said it was encouraged by Atkins’ approach of mapping on-chain clearing and settlement systems to existing legal frameworks “on their own terms,” rather than forcing them into legacy categories built for legacy architecture.
At the time of writing, the Hyperliquid platform’s native token, HYPE, was trading at $42.98, marking a 2% increase over the last 24 hours. Currently, the Hyperliquid token is trading at almost 27% below its all-time high of $59, which was reached last year.
Featured image created with OpenArt, chart from TradingView.com
