The Hyperliquid Policy Center (HPC) praised Securities and Exchange Commission (SEC) Chairman Paul Atkins on Friday for what it described as an ambitious effort to improve clarity for on-chain markets.
The SEC’s on-chain guidance agenda.
Atkins comments It focused on four key areas where he said the committee should provide more guidance on how to translate regulatory principles into the context of on-chain activity. He said participants should have a clear sense of how cross-chain trading systems operate within the regulatory environment.
Looking to the future, he noted that while the SEC may consider a limited “innovation path” soon, he also said the agency should think about what a future-proof framework could look like.
In his view, this framework would take the form of notice-and-comment rulemaking, and would specifically address how the SEC’s definition of “exchange” would apply to cross-chain trading systems.
The SEC Chairman also noted the need to clarify how Broker-dealer framework will apply to these activities. He said the committee should consider the issues raised in the recent staff statement on software interfaces, and suggested that such a policy initiative could include setting notice-and-comment exemption rules.
The third area of focus was the definition of “clearing agency” as it applies to on-chain clearing and settlement. Atkins said rulemaking may be necessary to confirm general-purpose activities that fall outside that definition.
Finally, Atkins called for more clarity regarding what are commonly referred to as “crypto vaults.” He described cryptocurrency vaults as on-chain Software applications Which allows users to passively earn yield by deploying their assets in on-chain yield generating opportunities.
He said the Committee should address relevant touchpoints to the Securities Act and the Advisers Act as it considers these policy initiatives.
Why the Hyperliquid Policy Center finds it promising
Atkins concluded by saying that the SEC will continue to move forward to accommodate markets moving across the chain. At the same time, he reiterated his call for Congress to send The law of clarity To President Trump’s office.
While the SEC intends to “future-proof its efforts through notice-and-comment rulemaking, there is no more powerful mechanism” for future-proofing than enshrining well-designed statutory language in law, he said.
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 designed for legacy architecture.
Hyperliquid Policy Center as well Named On-chain clearing and settlement is “one of the most important financial infrastructure innovations of our generation,” and she said she views the Chairman’s stance as a constructive step toward regulatory alignment as on-chain systems continue to evolve.
At the time of writing, Hyperliquid’s native token, HYPE, is trading at $42.98, representing a 2% increase over the past 24 hours. Currently, the Hyperliquid token is trading approximately 27% below its all-time high of $59, which was reached last year.
Featured image created with OpenArt, chart from TradingView.com
