Hyperliquid Launches $29 Million DeFi Lobby in Washington

Decentralized finance (DeFi) is going on the offensive in Washington. On February 18, 2026, the Hyper Foundation announced the creation of the Hyperliquid Policy Center (HPC), a lobbying organization backed by nearly $29 million to advocate for the sector’s interests with US lawmakers. This initiative marks a turning point in the crypto industry’s political strategy, shifting from reactive to proactive in shaping the rules of the game. At the helm of this new entity: Jake Chervinsky, a leading figure in US crypto law, whose appointment sends a strong signal to political circles in the federal capital. As Congress debates the regulatory future of decentralized protocols, Hyperliquid is betting on institutional influence to protect its business model.

Hyperliquid Policy Center: Anatomy of a DeFi Lobby

Substantial Funding in HYPE Tokens

The Hyper Foundation, an independent entity supporting the Hyperliquid ecosystem’s development, contributed 1 million HYPE tokens to launch the Policy Center. At the token’s current price, this endowment represents approximately $29 million, making the HPC one of the best-funded crypto lobbies from day one. These funds will finance the center’s operations: publishing technical research, commenting on legislative proposals, and engaging directly with policymakers. Unlike traditional fundraising, this native token funding aligns the lobby’s interests with those of the Hyperliquid community. The HYPE token reacted positively to the announcement, posting a 22% gain over the past month, though it slightly corrected on announcement day to around $29.10. This volatility illustrates the speculative nature of crypto assets, even when fundamentals appear solid.

Jake Chervinsky: A Political Strategist with Impressive Credentials

The choice of Jake Chervinsky as founding CEO is no accident. This crypto-regulatory lawyer brings rare experience at the intersection of law, technology, and politics. Before joining the HPC, Chervinsky served as Chief Legal Officer at Variant, a venture capital fund that has invested in major DeFi projects like Uniswap and Morpho. Previously, he honed his skills at the Blockchain Association, one of Washington’s leading crypto lobbying organizations, where he developed expertise in policy advocacy. “Blockchains are on the verge of becoming the foundation of the financial system. The United States must choose between adopting new rules to support this technology or waiting and watching other nations seize the opportunity,” Chervinsky stated at the launch. This rhetoric of international competition is a tech lobbying classic, but it resonates particularly in a context where jurisdictions like Singapore, Dubai, and the European Union (with MiCA) have already established clear regulatory frameworks.

Why Hyperliquid Is Investing in Political Lobbying

The Perpetual DEX Leader Wants to Protect Its Model

To understand this initiative, you first need to grasp what Hyperliquid is. Launched three years ago, this platform has established itself as the leading decentralized exchange for perpetual contracts by trading volume. In 24 hours, Hyperliquid processes nearly $5.4 billion in transactions, with open interest exceeding $5 billion. Perpetual contracts (or “perps”) are financial derivatives without an expiration date, allowing traders to maintain leveraged positions indefinitely. This market, long dominated by offshore platforms, represents a major concern for US regulators. Jeff Yan, Hyperliquid’s co-founder and CEO, acknowledged that the platform’s decentralized development “meant Hyperliquid lacked a unified voice in important policy discussions until now.” The HPC fills this gap.

A Tense Regulatory Environment

The initiative arrives at a critical moment. A crypto market structure bill is currently stalled in the US Senate, with potentially major implications for DeFi. Last October, Chervinsky publicly opposed a proposal from Senate Democrats that would have required DeFi protocol front-ends to register with regulators and perform KYC (Know Your Customer) verification. “This proposal is less a regulatory framework than an unprecedented and unconstitutional government takeover of an entire industry,” he declared on X. “All US DeFi developers would go offshore or see their projects die here.” This battle illustrates the fundamental tension between DeFi’s decentralized philosophy and traditional financial regulation requirements. The HPC intends to influence this debate with technical and economic arguments.

A Differentiated Strategy in the Crypto Lobbying Ecosystem

Standing Out from Existing Lobbies

Washington already has several crypto lobbying organizations: the Blockchain Association, Coin Center, the Chamber of Digital Commerce (founded in 2014), and the DeFi Education Fund. The HPC doesn’t claim to replace these players but adopts a specific positioning. The HPC’s mandate explicitly focuses on “decentralized market infrastructure,” with particular emphasis on perpetual contracts—the domain where Hyperliquid has built its dominant position. This specialization enables deep expertise on technical subjects that generalist lobbies may not master as well. “We will publish technical research, comment on proposed rules and legislation, and serve as a resource for policymakers who want to understand how DeFi really works,” the HPC explains in its launch announcement.

A Regulatory Window of Opportunity

The timing of this launch is no coincidence. Under Caroline Pham’s leadership as acting CFTC chair, the regulator authorized Bitnomial to offer spot crypto trading alongside perpetuals and options. Her successor, Michael Selig, appears open to mainstreaming perps. In a recent Bloomberg “Odd Lots” podcast, Selig was asked about the possibility of perpetual contracts becoming more common in traditional finance. “If demand exists for these products, that’s certainly something we’ll consider. For too long, these innovations have been developing only offshore, and we really want to bring them back with clear rules,” he responded. This openness represents a historic opportunity for Hyperliquid and the HPC: if perpetuals are legitimized in the United States, the platform could consolidate its leadership position against competitors like Aster and Lighter.

Implications for the Crypto Industry

A Precedent for Other DeFi Protocols

The HPC’s creation could inspire other major decentralized protocols to establish their own lobbying structures. Until now, DeFi has often been content to react to regulatory initiatives rather than anticipate them. This proactive approach marks a paradigm shift. For Hyperliquid investors and users, the initiative presents both positives and concerns. On one hand, effective political representation can protect the platform’s business model and foster a favorable regulatory environment. On the other, unlocking one million HYPE tokens to fund the lobby could create selling pressure on the token price.

Questions About Decentralization

Ironically, creating a centralized lobby to defend a decentralized protocol raises philosophical questions. How can a Washington-based organization with a CEO and defined objectives represent a distributed, leaderless community? Jeff Yan attempted to address this criticism by emphasizing that the HPC remains “independent” from the foundation and the protocol itself. However, HYPE token funding creates de facto interest alignment that nuances this proclaimed independence. This tension between decentralized ideals and political pragmatism is not new in the crypto industry. It reflects the growing maturity of a sector that must work within existing power structures to survive and thrive.

Outlook: Toward DeFi Institutionalization

The Hyperliquid Policy Center’s launch is part of a broader trend of decentralized finance institutionalization. Between Bitcoin and Ethereum ETFs, adoption by traditional players like BlackRock, and now structured political lobbying, crypto is gradually integrating into the established financial landscape. For market observers, this evolution presents a paradox: DeFi gains legitimacy by adopting the codes of traditional finance that it claimed to disrupt. But for pragmatists, it’s simply the price of mass adoption. In the short term, the HPC’s success will be measured by its ability to influence the crypto market structure bill. In the longer term, it could help define the rules that will govern the next decade of decentralized finance in the United States.