Hyperliquid co-founder Jeff Yan proposed that firms operating its HIP-3 markets verify U.S. customers and monitor trading activity, placing those responsibilities with the operators who shape each market.
Yan presented the proposal to policymakers in Washington. The idea remains his policy position and has not been adopted as U.S. policy. A revised HIP-3 framework that includes identity verification entered testing in September.
Under HIP-3, outside firms can run perpetual markets on Hyperliquid. Operators choose which markets to offer and set oracle parameters, leverage limits and settlement terms. Yan wants them to handle identity checks for U.S. customers and monitor activity in the markets they run.
Yan has previously argued that U.S. regulatory duties should follow the companies configuring markets. EconoTimes covered his position on operator responsibilities earlier. The new proposal names customer verification and market monitoring as duties for those firms.
