Hyper Foundation Funds New Washington‑Based DeFi Lobby with 1 Million HYPE Tokens
The Hyperliquid Policy Center, headed by veteran crypto lawyer Jake Chervinsky, will use the allocation to produce research, comment on legislation and lobby for clearer rules governing decentralized finance.
Washington, Feb. 18 – Hyperliquid, the on‑chain perpetual futures exchange that dominates trading volume in the perpetual‑DEX market, announced today that its independent Hyper Foundation has transferred 1 million HYPE tokens to a newly created policy organization in the U.S. capital. At current market prices, the grant is valued at roughly $29 million.
The receiving entity – the Hyperliquid Policy Center (HPC) – will operate as a Washington, D.C. think‑tank focused on the decentralized finance (DeFi) sector. Its charter, outlined in a press release, calls for the production of technical research, public commentary on pending regulations, and the provision of briefing material to policymakers seeking a practical understanding of how DeFi protocols function.
Jake Chervinsky, a long‑standing crypto‑policy attorney who previously served as chief policy officer at the Blockchain Association, will serve as HPC’s founder and chief executive officer. In a statement accompanying the launch, Chervinsky said the center exists “to ensure that American entrepreneurs, consumers, and institutions have the regulatory clarity they need to build and benefit from the future of finance.”
“We will publish technical research, comment on proposed rules and legislation, and serve as a resource for policymakers who want to understand how DeFi really works,” HPC said in a social‑media post on X.
Market Context
- HYPE token price: The HYPE token was trading marginally lower on the announcement day, down about 1 % to $29.10, according to CoinGecko data.
- Platform activity: In the 24‑hour window preceding the announcement, Hyperliquid processed ≈ $5.4 billion in trades and reported open interest exceeding $5 billion.
- Growth trajectory: Monthly perpetual‑DEX volumes on Hyperliquid have surged dramatically, peaking at nearly $400 billion in July of the most recent reporting period, according to data from DefiLlama.
Hyperliquid’s dominance in the perpetual‑DEX space has attracted competition from platforms such as Aster and Lighter, which have also posted rapid growth, but the exchange remains the clear volume leader.
Why the Policy Center Matters
The United States is currently shaping its approach to DeFi, with multiple regulatory agencies – the SEC, CFTC, FinCEN and the Treasury – proposing or implementing rules that could reshape how on‑chain derivatives and lending protocols operate. Historically, industry input has been fragmented, often coming from trade groups or ad‑hoc coalitions. HPC’s establishment signals a more coordinated effort from a single, high‑volume protocol to influence policy.
Potential implications include:
- Technical grounding for regulators – By publishing research that demystifies on‑chain perpetual contracts, HPC can help bridge the knowledge gap that frequently hampers effective rulemaking.
- Early‑stage lobbying – Direct engagement with lawmakers may shape the language of forthcoming legislation, potentially reducing the risk of overly restrictive or incompatible requirements.
- Signal to investors – A clear regulatory pathway could lower compliance costs for market participants, improve capital efficiency, and attract institutional capital to Hyperliquid’s ecosystem.
Risks and Considerations
- Regulatory capture concerns – Critics may argue that a single protocol’s heavy involvement in policy formation could tilt rules in its favor, potentially disadvantaging smaller players.
- Token‑based funding scrutiny – The use of native tokens as a funding mechanism for lobbying may draw additional attention from the SEC, which has indicated a willingness to enforce securities laws on crypto assets used for political purposes.
- Market volatility – The modest dip in HYPE’s price on the day of the announcement reflects typical market reactions to large token movements; sustained price pressure could affect the foundation’s capacity to continue funding policy work.
Key Takeaways
- Funding: Hyper Foundation has allocated 1 million HYPE tokens (≈ $29 M) to the newly founded Hyperliquid Policy Center.
- Leadership: Veteran crypto policy lawyer Jake Chervinsky will lead HPC as founder and CEO.
- Mission: The center aims to produce technical research, comment on legislation, and serve as a resource for U.S. policymakers on DeFi.
- Industry Context: Hyperliquid processes over $5 billion in daily trades and holds more than $5 billion in open interest, underscoring its influence in the perpetual‑DEX market.
- Regulatory Impact: Direct lobbying from a leading DeFi protocol could shape forthcoming U.S. rules, potentially creating clearer compliance pathways but also raising concerns about market concentration.
- Market Reaction: HYPE token slipped 1 % to $29.10 on the announcement; longer‑term price effects will hinge on the success of the policy initiative.
As the U.S. regulatory landscape for decentralized finance continues to evolve, the Hyperliquid Policy Center’s activities will be closely watched by both industry participants and lawmakers seeking to balance innovation with consumer protection.
Source: https://thedefiant.io/news/defi/hyperliquid-policy-center-launches
