Hyperliquid’s CEO Explained How Americans Could Legally Use It. What Would US Access Mean for HYPE?

Jeff Yan, co-founder and CEO of Hyperliquid Labs—the team behind Hyperliquid (CRYPTO:HYPE)—clarified that Americans using a VPN to access the exchange violate its terms of service. A VPN, or virtual private network, masks a user’s location.

On a podcast, Yan explained that legal access for US users wouldn’t be possible until regulators clearly understand on-chain technology and determine it aligns with the core principles of the Commodity Futures Trading Commission (CFTC).

He highlighted USD Coin (CRYPTO:USDC), a stablecoin by Circle Internet Group (NYSE:CRCL | CRCL Price Prediction), as an example. The public ledger lets anyone verify that user balances match the USDC held at a specific address, showing customer funds without intermediaries. However, Yan did not mention any specific plans, regulatory meetings, or timelines.

HYPE is trading around $80, down 8.3% over the past week and 14.2% over the past month, and 18.4% below its peak of $98. With this in mind, does Yan’s explanation of how Americans might eventually trade on Hyperliquid provide any hope for HYPE holders?

Hyperliquid Runs a Perpetual Futures Exchange Outside the US

Hyperliquid is a perpetual futures exchange. A perpetual future, or “perp,” is a contract that mirrors an asset’s price but never expires, allowing traders to take long or short positions without owning the asset. Traders on opposite ends pay small periodic funding fees to keep the contract aligned with the spot price. Hyperliquid operates these markets on its own blockchain, where every order and balance is transparent.

While it focuses on crypto perps, Hyperliquid also offers a spot market. The platform includes a feature called HIP-3, which enables external developers to launch their own perp markets, provided they stake 500,000 HYPE (approximately $40 million at the current price) for at least 183 days after launch. Traders have used Hyperliquid to speculate on commodities like crude oil, especially following the outbreak of war in Iran earlier in 2026.

However, because Hyperliquid is not licensed for use in the US, its terms designate US users as “Restricted Persons” and block them from accessing the exchange. Generally, any platform offering perps to Americans needs to register with the CFTC and comply with its principles on fair trading, manipulation, and safeguarding customer funds.

Hyperliquid Channels Most Fees Into HYPE Buybacks

Since Hyperliquid Labs is privately owned, the best insight into its finances comes from a June 2026 report by CoinShares, a cryptocurrency asset management firm. The report indicates that the protocol allocates 99% of its trading fees to daily open-market purchases of HYPE through a pool known as the Assistance Fund, which had acquired about 44.4 million HYPE, valued at about $2.2 billion at the time.

Trading fees are just one aspect of its income stream. Hyperliquid also holds around $5 billion in USDC as collateral from traders, earning an interest rate of 3.5% to 4%. Notably, 90% of this income goes back into the Assistance Fund, roughly $160 million to $180 million annually.

Yan’s Comments Fall Short of Committing Hyperliquid or the CFTC

While Yan’s comments provide some insights, Hyperliquid has not filed any regulatory applications, and the CFTC has yet to respond. Additionally, Yan’s position suggests he favors placing regulatory responsibility on financial firms operating the markets rather than on the blockchain.

Moreover, Yan mentioned only USDC as a collateral asset, suggesting a US user could trade on Hyperliquid with dollars without buying HYPE. If regulatory duties fall on registered firms, a US-friendly version of Hyperliquid might operate through an approved intermediary, leading to different app ecosystems and fees, the impact of which on the Assistance Fund remains unclear.

Currently, Americans seeking perpetual futures already have a compliant option through Coinbase (NASDAQ:COIN), which offers US derivatives via Coinbase Financial Markets. Futures accounts there are protected under CFTC regulations, including Part 190, which covers bankruptcy protections. Furthermore, Yan’s mention of VPN users suggests some Americans are already trading on Hyperliquid, meaning its fees may already reflect some of that demand.

Will Hyperliquid’s US Access Lift HYPE?

Based on Yan’s comments, HYPE doesn’t appear to benefit from legal access in the US just yet. While such access could increase Hyperliquid’s user base, volume, and fees, HYPE holders would only benefit from buybacks if US fees contribute to the Assistance Fund, and from staking if US firms launch HIP-3 markets. Both outcomes rely on details Hyperliquid has yet to clarify, and HYPE kept declining the week of the podcast.

The critical test will be a formal step from the CFTC, such as a no-action letter indicating its staff won’t recommend enforcement, an exemptive order, or a filing naming Hyperliquid or a firm planning to offer access. Until such progress is made, HYPE holders may be left waiting in uncertainty.

Contact [email protected] for any questions or corrections.