Hyperliquid founder Jeff Yan proposed that regulatory obligations should fall on financial firms operating markets on the Hyperliquid blockchain rather than the protocol itself. Speaking on Bloomberg's "Odd Lots" podcast, Yan argued this distinction would enable expansion into Wall Street without assuming the full compliance burden of a traditional exchange. This framework addresses ongoing discussions among U.S. regulators regarding the integration of offshore trading venues into the domestic financial system. By placing compliance responsibilities on market operators instead of the underlying blockchain infrastructure, Hyperliquid aims to facilitate institutional adoption while navigating current regulatory considerations.