Why Is HYPE Surging? What Does Trump’s Support for Hyperliquid’s U.S. Entry Mean?

Key Takeaways

• Trump publicly supports Hyperliquid’s efforts to enter the U.S. market compliantly, drawing renewed attention to HYPE and U.S. DeFi regulation.
• Hyperliquid still faces major compliance challenges in entering the U.S. Potential paths include partnerships with licensed institutions, a U.S.-compliant version, or a new CFTC framework for on-chain derivatives.
• The SEC’s proposed Regulation Crypto Assets could lower fundraising barriers for some digital asset projects, signaling a shift toward enabling compliant crypto development.
• The GENIUS Act, CLARITY Act, CFTC’s DeFi initiatives, and the SEC’s new rules show that the U.S. is building a more comprehensive digital asset regulatory framework.
• The U.S. Treasury’s expanded long-term Treasury buybacks could improve liquidity in the long end of the bond market, but they do not mean the Federal Reserve has restarted QE.
• BTCC already offers HYPE trading services, providing a more direct CEX option for users who want to track and trade HYPE.
• HYPE investors should closely watch the CFTC’s compliance plans, along with Hyperliquid’s trading volume, TVL, and market share.

White House Crypto Meeting: What Signals Did Trump Send?

The meeting was not focused on any single crypto asset. Instead, the discussion centered on crypto legislation, DeFi compliance, digital asset financing, and the long-term development of the U.S. crypto market.

1. Crypto Legislation: GENIUS Act and CLARITY Act

Trump first highlighted the crypto policies his administration has advanced over the past two years, with the GENIUS Act and CLARITY Act standing out as two of the most important pieces of legislation.

Trump noted that the GENIUS Act, which he previously signed into law, established a clearer regulatory foundation for U.S. dollar-backed stablecoins. As compliant stablecoins gain wider adoption, demand for the U.S. Treasuries held as reserve assets could also increase, potentially strengthening the dollar’s position in the digital financial system.

The CLARITY Act, meanwhile, addresses the broader regulatory structure of the crypto market. The bill aims to clarify which digital assets should be classified as securities and which should be treated as commodities, while defining the respective regulatory responsibilities of the SEC and CFTC.

Trump called on Congress to accelerate the passage of the CLARITY Act and establish a clearer legal framework for digital assets. Coinbase CEO Brian Armstrong said that Congress plans to vote on the bill on September 15. If passed, it could turn the regulatory progress made over the past year into a more permanent legal framework for the crypto industry.

2. Hyperliquid Could Become a Test Case for DeFi Compliance

Statements from U.S. regulators were equally worth watching.

CFTC Chairman Mike Selig discussed the latest developments in the U.S. digital asset derivatives market, including the launch of the first compliant Bitcoin perpetual futures product in the United States and efforts to develop a regulatory framework for on-chain financial infrastructure.

The biggest focus, however, was undoubtedly Hyperliquid.

Selig said the CFTC is exploring how Hyperliquid could enter the U.S. market in a “fully compliant and legal” manner. Trump subsequently highlighted the development publicly.

This was also a key reason HYPE surged sharply following the meeting.

3. SEC: New Rules Could Open the Door to Crypto Asset Financing

SEC Chairman Paul Atkins highlighted the new Regulation Crypto Assets proposal.

The framework is designed to provide a clearer regulatory pathway for digital asset issuance and fundraising, allowing some crypto startups to raise capital under the securities law framework with lower compliance costs.

The proposal includes fundraising exemptions for smaller projects, exemption mechanisms for larger digital asset offerings, and a potential safe harbor framework.

This signals that U.S. crypto regulation is moving beyond simply addressing how existing digital assets should be regulated and increasingly focusing on how digital asset projects can legally issue tokens, raise capital, and grow in the United States.

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4. Bitcoin Reserves: Further Expansion Remains Possible

During the Q&A session, Trump was also asked whether the U.S. government would further expand its Bitcoin reserves.

Trump did not provide a specific plan, but said he remains open to the idea and would listen to recommendations from his regulatory team.

Overall, the White House meeting sent a clear signal: U.S. crypto policy is gradually shifting from a focus on regulation and enforcement toward building a comprehensive market framework that can accommodate stablecoins, digital asset financing, on-chain derivatives, and DeFi.

Hyperliquid sits directly at the intersection of this policy shift. It represents the innovative side of DeFi while potentially becoming an important test case for how U.S. regulators approach a new generation of on-chain financial infrastructure.

HYPE Surges: Why Does Trump Want Hyperliquid to Enter the U.S. Market?

Trading Hype Now

As of now, HYPE is trading at $71.93, up 23.7% over the past 24 hours, with 24-hour trading volume reaching $1.513 billion, a sharp 490.40% increase from the previous day.

Volatility in the derivatives market has also been significant. Over the past 24 hours, HYPE-related markets have recorded approximately $54.41 million in liquidations, including around $6.25 million in long liquidations and $48.16 million in short liquidations. The significantly higher level of short liquidations suggests a notable short squeeze as the token surged.

Source: coinglass

With price, trading volume, and liquidations all surging simultaneously, the market is clearly reacting to the major policy catalyst surrounding HYPE.

But why is Trump specifically paying attention to Hyperliquid? One important reason is that Hyperliquid is no longer just another crypto project. It has become a major example of the development of on-chain derivatives and DeFi financial infrastructure.

As of now, Hyperliquid has approximately $6.25 billion in TVL, around $15.2 billion in 24-hour perpetual futures trading volume, and more than $41 billion in seven-day trading volume. Its open interest has also remained at the $10 billion-plus level.

More importantly, Hyperliquid has established a strong position in the on-chain perpetual futures market. In Q1 2026, its trading volume reached $633 billion, accounting for approximately 26% of global on-chain perpetual futures volume. Its annualized revenue reached $616.9 million, ranking first among crypto protocols. (Source: vaneck)

Hyperliquid is also expanding beyond traditional crypto derivatives. Its HIP-3 markets have begun covering assets such as stocks, gold, and crude oil, with open interest in these markets reaching $1.43 billion at one point. This shows that Hyperliquid is attempting to extend its 24/7 on-chain trading model into traditional financial assets.

In other words, Hyperliquid matters to the U.S. because it already has significant trading volume, liquidity, and user demand. If an on-chain derivatives platform with billions of dollars in TVL and daily trading volume in the tens of billions can establish a compliant presence in the U.S., its impact on traditional exchanges and the broader DeFi industry could be significant.

Related Reading：

What Is Hyperliquid (HYPE) and How Does It Work?

How to Buy Hyperliquid (HYPE) and Can You Invest in It?

Hyperliquid (HYPE) Price Prediction: How High Can Hyperliquid Go?

How Will Hyperliquid Enter the U.S.? 3 Possible Compliance Paths

Trump’s comments address the question of whether the U.S. is willing to let Hyperliquid enter the market, but the more difficult question is how Hyperliquid could actually enter. The CFTC has not yet announced a specific regulatory framework, so it is more useful to examine three potential paths based on the existing regulatory system and Hyperliquid’s product model.

Path 1: Partner With a U.S. Licensed Exchange or Financial Institution

Hyperliquid could avoid becoming a regulated U.S. trading platform itself. Instead, it could partner with a licensed exchange, broker, or financial institution. The partner would already hold the necessary licenses from the CFTC or other regulators.

Under this model, Hyperliquid could mainly provide technology and infrastructure. The licensed partner would handle customer onboarding, KYC, fund management, and regulatory reporting.

This approach would let Hyperliquid use the existing financial system’s compliance infrastructure. It could also reduce the difficulty of obtaining and maintaining its own licenses.

However, there is a clear trade-off. Hyperliquid would need to rely on traditional financial intermediaries. This could weaken some of its core advantages as a decentralized platform.

Path 2: Launch a Compliant Version for U.S. Users

Hyperliquid could avoid becoming a regulated U.S. trading platform itself, instead partnering with a licensed exchange, broker, or financial institution that already holds the necessary licenses from the CFTC or other regulators.

Under this model, Hyperliquid could mainly provide technology and infrastructure, while the licensed partner handles customer onboarding, KYC, fund management, and regulatory reporting.

This approach would allow Hyperliquid to use the existing financial system’s compliance infrastructure, while reducing the difficulty of obtaining and maintaining its own licenses.

However, there is a clear trade-off: Hyperliquid would need to rely on traditional financial intermediaries, which could weaken some of its core advantages as a decentralized platform.

Path 3: The CFTC Creates a New Regulatory Framework for On-Chain Derivatives

The third option, and arguably the one with the greatest long-term significance, would be for the CFTC to establish a regulatory framework specifically adapted to on-chain perpetual futures and DeFi infrastructure.

Traditional derivatives regulation was largely designed around exchanges, brokers, and clearing organizations. Hyperliquid, by contrast, handles much of its trading, margin management, and liquidation infrastructure on-chain.

Rather than requiring Hyperliquid to simply replicate the structure of a traditional exchange, regulators could instead define which activities should be subject to regulation and whether those obligations should fall on protocol developers, front-end operators, or registered entities using the protocol.

If the CFTC ultimately embraces this approach, Hyperliquid could become one of the first on-chain derivatives protocols to establish a compliant operating model in the U.S. More importantly, it could provide a regulatory precedent for other DeFi projects seeking access to the U.S. market.

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What Signal Does This Send to the Crypto Market?

Recent U.S. policy moves suggest more than just “Trump is bullish on crypto.” A broader policy shift is taking shape. The U.S. is lowering regulatory barriers for digital assets while using fiscal and financial tools to improve liquidity in traditional markets.

On August 19, the U.S. Treasury announced an expansion of its liquidity-supporting buyback operations for longer-dated Treasuries. The maximum size of individual buyback operations for 10–20-year and 20–30-year nominal coupon securities will increase from $2 billion to at least $4 billion, with the new scale set to take effect on September 9.

At the same time, several recent developments in the U.S. crypto market have sent notable policy signals:

• Stablecoins: The GENIUS Act creates a clearer regulatory framework for dollar-backed stablecoins.
• Market structure: Trump continues to support the CLARITY Act, which would clarify SEC and CFTC regulatory responsibilities.
• DeFi: The CFTC is exploring ways for Hyperliquid to enter the U.S. market legally.
• Digital asset fundraising: The SEC proposed Regulation Crypto Assets, creating exemptions for certain digital asset offerings and fundraising.
• Traditional finance: The Treasury is expanding long-term Treasury buybacks to improve bond market liquidity and reduce market pressure.

In the short term, easing pressure in the long-end Treasury market could improve overall risk sentiment. If long-term interest rates decline further, the valuation pressure on growth assets and other risk assets could also ease to some extent.

The direction is becoming increasingly clear: the U.S. is not only seeking to establish a clearer regulatory framework for crypto, but is also trying to improve the functioning of traditional financial markets, creating conditions for deeper integration between digital assets and traditional finance.

What Should HYPE Investors Watch Next?

Hyperliquid’s U.S. entry still depends on future regulations and its final compliance path. For most investors, it may be better to watch HYPE’s market performance and CEX trading access rather than bet on one regulatory outcome.

For users interested in HYPE but unfamiliar with wallets or DeFi, CEXs can offer a more direct option. Trading HYPE on a centralized exchange can reduce wallet connections, on-chain transfers, and smart contract interactions.

BTCC already offers HYPE trading services, allowing users to track HYPE’s price and market trends. Users can then choose a trading method based on their own risk tolerance.

However, Hyperliquid’s potential U.S. approval does not guarantee further gains for HYPE. The market has already priced in some regulatory expectations. If the CFTC delays a clear compliance path, HYPE could face significant volatility.

For HYPE investors, two factors are worth watching next:

• Whether the CFTC announces a specific compliance path for Hyperliquid’s U.S. entry.
• Whether Hyperliquid can maintain growth in trading volume, TVL, and market share.

Conclusion

Trump’s support for Hyperliquid marks another important step in the evolution of U.S. crypto policy. The focus is shifting from simply regulating crypto to building a clearer framework for stablecoins, DeFi, digital asset fundraising, and on-chain markets.

HYPE’s sharp rally shows how strongly the market is reacting to this policy shift. However, Trump’s comments do not mean Hyperliquid has already received approval to operate in the U.S. The next key step is whether the CFTC can establish a workable compliance path.

More broadly, the combination of crypto-friendly regulation and improving traditional market liquidity could create a more supportive environment for digital assets. For HYPE investors, the focus should now be on CFTC developments, Hyperliquid’s fundamentals, and broader market adoption.

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