Hyperliquid Is Building a Shadow Stock Exchange. The SEC Might Soon Make It Legal.

▤ Summary

The SEC is preparing an "innovation exemption" that could temporarily legalize tokenized stock trading on decentralized platforms and effectively clear the path for Hyperliquid to operate in the U.S. Hyperliquid already leads decentralized perpetual futures markets and hosts tokenized U.S. stocks, generating substantial protocol fees and token buybacks. The exemption could dramatically expand Hyperliquid's U.S. addressable market and boost demand for its HYPE token, but the rules would be time-limited and might not result in permanent regulatory reform. The platform also faces growing competition and other execution risks, so regulatory clarity is a potential catalyst but not a guaranteed long-term advantage.

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