Hyperliquid Founder Jeff Yan Proposes New Regulatory Model to Bring Wall Street Onchain - CCN.com

Jeff Yan, founder of the decentralized derivatives exchange Hyperliquid, has proposed a new regulatory framework aimed at bringing Wall Street-style trading activity onchain. The proposal, reported by CCN.com, reflects a broader push within decentralized finance to bridge the gap between traditional capital markets and blockchain-based infrastructure.

The core idea is that existing regulatory structures, designed for centralized intermediaries, may not map cleanly onto decentralized venues. Yan's proposal appears intended to offer a model in which institutional participants could operate within clearer compliance boundaries while still using onchain settlement and trading systems. For market observers, the development is notable because it signals that DeFi founders are increasingly engaging with regulatory design rather than treating compliance as an afterthought.

What to watch: whether the proposal gains traction with regulators or industry peers, and whether it prompts similar frameworks from other decentralized exchanges. Concrete details on how such a model would handle investor protection, custody, and reporting will matter most. For now, the proposal is a discussion point rather than an enacted rule, so its practical impact on institutional adoption remains uncertain.