Jake Chervinsky

@NeerajKA @mhluongo Hyperliquid 🫡

I’m collecting a list of crypto policy advocates that are drawing a hard line on not weakening the BRCA. If that’s you, reply to this thread.

If you’re wondering why $HYPE is making new ATHs today, this is your best resource to understand the thesis. @defi_monk and I spent an enormous amount of timing detailing the evolution of Hyperliquid and quantifying how big the opportunity could be, potentially reaching $300B+ in the coming years. The job is far from finished.

Limiting or weakening the BRCA is a non-starter. Prosecuting non-custodial developers will not help law enforcement. It'll waste valuable enforcement resources chasing folks who do not custody customer funds, execute trades, or control user assets. The CLARITY Act must protect developers and preserve the BRCA’s core protections. You do not strengthen America by prosecuting developers for writing code.

@KenWattana I am! Glad you are too.

Aren’t we glad Hyperliquid invested in a policy arm instead of onboarding degenerate gamblers to perps with paid growth like a lot of the timeline said they should

It was great having @chameleon_jeff in DC this week. We had productive meetings with policymakers and got some great insight on the path forward for Hyperliquid in the USA. Thanks Jeff for making the time!

hypurr also made it to washington!

@zoomerfied x.com/HyperliquidPC/…

[ ZOOMER ] CME AND NYSE ARE PUSHING THE US TO REGULATE HYPERLIQUID, DUE TO CONCERNS ABOUT MARKET MANIPULATION AND SANCTIONS EVASION: BBG

Today, Bloomberg reported on certain incumbent traditional exchanges raising concerns about the integrity and impact of markets for perpetual derivatives on Hyperliquid. These concerns are unfounded. Hyperliquid offers enhanced market transparency, publishing a complete onchain record of every transaction in real time, making it a uniquely hostile environment for insider trading or price manipulation. Hyperliquid’s transparency serves as a strong deterrent for misconduct and facilitates surveillance, detection, and investigation by regulators and law enforcement. Hyperliquid also offers 24/7 trading, an innovation that substantially increases market efficiency. Prices move whether traditional exchanges are open or not. Continuous trading eliminates gaps and discontinuities between legacy market hours, improving price discovery for all participants. Bloomberg correctly reports that U.S. law is not currently tailored for derivatives markets on public blockchains like Hyperliquid. We look forward to continuing our work with policymakers in Washington to bring onchain markets inside the regulatory perimeter.

The bipartisan passage of the Clarity Act out of the Senate Banking Committee is historic: the first time a comprehensive crypto market structure bill has advanced to the Senate floor. We appreciate all of the effort that went into this success, but more work is needed before the bill is ready to become law. We look forward to engaging on Capitol Hill and with the administration as the process continues.

Welcome @coinbase and @circle to the Hyperliquid ecosystem!

CLARITY Act markup today. The bill will almost certainly move forward since all 13 Rs have shown support. The question is if any Ds vote yes. That’s genuinely unknown this morning. It would be nice if it’s bipartisan, but not critical. More work to do on the floor either way.

DEF is tracking anti-DeFi amendments. Ahead of the Senate Banking Committee markup of the Clarity Act, Senators submit amendments to be considered and voted on. Importantly, not every amendment will be considered, which means we have a timely opportunity to urge Senators to oppose amendments that could harm DeFi technology, developers, and users. Here are the amendments you should ask your Senators to oppose*: ➡️ Amendment #16, Senator Cortez Masto. [Re-writes the BRCA to turn it from a shield to a sword against developers] ➡️ Amendment #17. Senator Cortez Masto. [Strikes protections for non-controlling developers in Section 302] ➡️ Amendment #22, Senator Cortez Masto. [Strikes protections for non-controlling developers in Section 301] ➡️ Amendment #24, Senator Kim. [Expands the definition of a “financial institution” in 31 USC 5312 to include digital asset businesses] ➡️ Amendment #27, Senator Kim. [Expands BSA/AML obligations and certification requirements for "covered businesses" to “prevent illicit finance” through decentralized financial services platforms] ➡️ Amendment #32, Senator Van Hollen. [Expands application of criminal code to DeFi developers who publish, distribute, deploy, administer, or constitute code that “facilitates” crime or who act with “reckless disregard for a substantial risk” the DeFi trading protocol is used in connection with a violation of 1956, 1957, 1960, or 2339C] ➡️ Amendment #33, Senator Van Hollen. [Prohibits publishing, distributing, deploying, or constituting a DeFi trading protocol “for the purpose of facilitating” a violation of 1956, 1957, 1960, or 2339C] ➡️ Amendment #67, Senator Warren. “...would exempt certain software developers identified in the White House digital assets report and address vulnerabilities to protect national security” ➡️ Amendment #69, Senator Warren. “...would define financial institutions under anti-money laundering law” ➡️ Amendment #70, Senator Warren. “...would establish tailored anti-money laundering and countering the financing of terrorism responsibilities for certain DeFi front-ends” ➡️ Amendment #71, Senator Warren. “...would establish tailored anti-money laundering and countering the financing of terrorism responsibilities for certain DeFi businesses” ➡️ Amendment #72, Senator Warren. “...would establish tailored anti-money laundering and countering the financing of terrorism responsibilities for certain DeFi businesses” ➡️ Amendment #73, Senator Warren. “...would close the tokenization loopholes” ➡️ Amendment #89, Senator Reed. [Direct attack on Van Loon - 5th Circuit federal court decision - by subjecting smart contracts to sanctions “without regard to whether such contracts operate autonomously, can be modified, or are owned”] ➡️ Amendment #92, Senator Reed. [Expands the application of the BSA by broadening the definition of "financial institution" to include digital asset companies and developers] ➡️ Amendment #94, Senator Reed. [Eliminates BRCA from Clarity Act] *The amendment text is not yet public. Bracketed language is DEF’s description based on text the DEF team reviewed; language in quotes is the Senators’ original description, which suggests a threat to DeFi. The DEF team will keep track of these amendments during Thursday’s markup, and will share updates on X. Stay tuned!

@SlicedBread00 Hypurrliquid.

The CLARITY text came out pretty good last night. It's not perfect, but nothing that passes Congress ever will be. If we want a market structure bill, we need to be pragmatic. There are compromises here, but the deal is decent. Now we wait to see if it survives the amendments.

@jords I really appreciated this, thank you for sharing!

new post is out - it's adorable and will be better for your brain than continuing to mindlessly scroll ty for reading :') open.substack.com/pub/jords/p/th…

Happy CLARITY Act markup week! We've been working toward this moment for a long time. As of now, the big question is if the bill gets bipartisan support, which makes passage on the Senate floor seem much more likely. The latest on the state of play from @adam_minehardt:

T minus 3 days until @BankingGOP markup of the Clarity Act. A few thoughts on where we stand with the caveat that things are moving quickly and changing by the minute: 🧵👇

1/ The Senate Banking Committee noticed a markup for May 14 – a major step for digital asset policy in the US. I look forward to reviewing the full text. Now the job is to keep this moving – through Congress and to the President. It’s time to make this law. 🧵

It's been almost four months since the Senate Banking Committee pulled its CLARITY Act markup in January. Now we're back on for Thursday, May 14. I doubt the Committee would go again unless it has the votes. But the text isn't out yet, likely to come Monday. Enjoy the weekend.

Today, @SECPaulSAtkins laid out his priorities for providing clarity to onchain markets, including this on clearing and settlement: "When settlement is near-instantaneous and counterparty risk is managed algorithmically, the traditional clearing agency model requires fresh analysis." Onchain clearing and settlement is one of the most significant financial infrastructure innovations of our generation. HPC is encouraged to see a Chairman willing to map these systems to existing legal frameworks on their own terms, rather than force them into legacy categories built for legacy architecture.