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Hyperliquid Faces Regulatory Scrutiny Amid Democrats’ Crypto Crackdown

Hyperliquid Faces Regulatory Scrutiny Amid Democrats’ Crypto Crackdown

Author:

Global Cryptocurrency

Published:

2025-11-20 09:25:02

15

3

BTCCSquare news:

Decentralized exchange Hyperliquid (HYPE) finds itself in the crosshairs of U.S. regulatory scrutiny as Democratic lawmakers intensify their crypto crackdown. Senators Elizabeth Warren and Jack Reed have raised national security concerns over World Liberty Financial (WLFI), a crypto venture linked to former President Donald Trump's family, alleging insufficient safeguards against illicit financing.

On-chain investigator ZachXBT highlighted WLFI's $550 million token sale, while senators pointed to $10,000 allegedly originating from questionable sources—a mere 0.0018% of total funds. The scrutiny reflects growing political tensions around cryptocurrency regulation, with particular focus on governance vulnerabilities and fund provenance.

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