Chervinsky says Hyperliquid is public infrastructure, not an exchange
In brief
- Chervinsky called Hyperliquid neutral public infrastructure, not an exchange, in remarks reported by Crypto Briefing.
- Chervinsky placed the protocol one level below Coinbase and Kraken, saying it isn't meant to compete.
- Hyperliquid, like Bitcoin and Ethereum, doesn't need to register as an exchange, Chervinsky argued.
- The Hyperliquid Foundation funded the February 2026 nonprofit with 1 million HYPE, Crypto Briefing reported.
One level below Coinbase and Kraken
Chervinsky placed Hyperliquid one level below exchanges such as Coinbase and Kraken, and said the network isn't meant to compete with them. Under his framing, regulated entities (traditional exchanges included) can build their own products on Hyperliquid's technology.
He placed it “one level below” exchanges like Coinbase and Kraken.
He compared the setup to Bitcoin and Ethereum. Like those networks, he argued, Hyperliquid doesn't need to register as an exchange.
That's the core of the pitch.
Chervinsky cited three advantages behind his case: transparency, resilience and cost-effectiveness. He also predicted that, if the model succeeds, every significant exchange would need to adopt public blockchain infrastructure within a decade to stay competitive, and he indicated that he expects onchain markets to operate under US regulatory frameworks soon. On October 8, he spoke at TOKEN2049 in Singapore about Hyperliquid's role as infrastructure for all of finance, alongside figures from HyperliquidX and ICE.
Who's making the argument
The Hyperliquid Policy Center launched in February 2026 as a nonprofit focused on advocacy and research on onchain markets and perpetual derivatives (perps are futures contracts with no expiry date). According to Crypto Briefing, the center was funded with a donation of 1 million HYPE tokens from the Hyperliquid Foundation, valued at roughly $28-29 million.
The outlet also pointed to a working example. In September 2026, Payward, Kraken's parent company, announced plans to offer permissioned perpetual futures on Hyperliquid to eligible US customers, Crypto Briefing reported. Kraken handles who gets access and how the rules are applied; Hyperliquid handles the market itself.
The regulatory read
Crypto Briefing characterized the infrastructure framing as a regulatory strategy. In the outlet's analysis, if the protocol is treated like Bitcoin or Ethereum rather than like an exchange, it avoids exchange registration requirements, while the businesses building on top of it carry the compliance burden.
Frequently asked questions
Why does Chervinsky say Hyperliquid doesn't need to register as an exchange?
Chervinsky compared Hyperliquid to Bitcoin and Ethereum and argued that, like those networks, it's neutral public infrastructure rather than an exchange. He said the protocol sits one level below exchanges such as Coinbase and Kraken, which can build their own products on it. This is his view as an advocate, not a legal ruling.
What is the Hyperliquid Policy Center?
The Hyperliquid Policy Center is a nonprofit that launched in February 2026 to do advocacy and research on onchain markets and perpetual derivatives. According to Crypto Briefing, it was funded with a donation of 1 million HYPE tokens from the Hyperliquid Foundation, valued at roughly $28-29 million. Jake Chervinsky is its CEO.
