Hyperliquid founder Jeff Yan outlined a regulatory approach that would shield his fast-growing cryptocurrency trading platform from direct US exchange oversight, as American authorities consider how to bring offshore venues into the domestic financial system. In an interview with Bloomberg’s Odd Lots podcast, Yan argued that regulatory obligations should fall on financial firms operating markets on Hyperliquid’s blockchain rather than the network itself.

The distinction would allow the company to expand its reach into Wall Street without assuming the full compliance burden of a traditional exchange. Hyperliquid is best known for offering perpetual futures, which allow traders to make leveraged bets on cryptocurrencies and other assets without the expiry dates of conventional futures. Yan, 31, is the co-founder of Singapore-based Hyperliquid Labs, which is the main developer of the trading venue’s underlying blockchain.

Hyperliquid remains off-limits to US customers, although Kraken parent Payward has announced plans to offer American investors derivatives using its technology through a regulated exchange. Read: The Little-Known Crypto Powerhouse Behind Billions in Trading Yan compared the proposed division of regulatory responsibilities to internet infrastructure, which supports financial services without itself being subject to the same oversight. His broader ambition is to provide the underlying trading technology for established Wall Street institutions rather than displace them, drawing a parallel with Amazon Web Services and its role in corporate computing.

“The regulation sits at the layer where there are controls, and indeed the deployers are the ones that exercise these controls,” Yan said. “And so it’s a very natural way for the protocol to continue playing its role as a networking liquidity infrastructure layer.”Hyperliquid, once a little-known startup, is gaining mainstream popularity especially after President Donald Trump said in August that US regulators are working to bring the exchange into the country. Yan noted that while US regulators are conservative, they are willing to move fast with new technologies.

Regulators “want to embrace innovation, but there’s a very heavy responsibility with that because there’s an existing system that by and large works well, serves many people, and has protections built in place,” said Yan. “So I think there’s very naturally this gap of wanting to understand, ‘is this technology truly compatible with our core principles?’”The question of how to regulate Hyperliquid has also drawn scrutiny from established exchange operators, including CME Group Inc. and Intercontinental Exchange Inc., Bloomberg has previously reported. In the Odd Lots interview, Yan pushed back on calling traditional finance players as “legacy,” as he believes that Wall Street institutions will also want to come and build on Hyperliquid eventually. Read: The $500 Billion Experiment to Build 24/7 Markets on Blockchain“We’re not trying to displace anything,” Yan said.

“In fact, I think the technology can benefit everyone who currently operates markets in a more traditional setting. And whether these markets are perpetual markets or settled dated futures is irrelevant because ultimately what you really need is an order book, clearing system and global distribution, concentration of liquidity.”On Hyperliquid’s ambition to be the“house of all finance,” Yan said his team is “very serious” about it. “Ultimately, the thinking is that the financial system is there to better serve as many people on this planet as possible,” said Yan. “I think many layers are moved, but this sort of permissionless employment system ultimately is accomplishing that goal.”

Before he moved to Singapore to start Hyperliquid Labs, Yan lived in Puerto Rico and ran a crypto fund called Chameleon Trading. Yan also worked at Hudson River Trading after he graduated from Harvard University.