Projects like Hyperliquid are proactively engaging regulators through comment submissions and protocol modifications. The CFTC’s perpetuals proposal shows regulators warming to DeFi innovations that incorporate compliance features like KYC/AML checks.
Meanwhile, established players like Polygon are prioritizing enterprise partnerships with regulated entities. This shift toward institutional-grade infrastructure aims to preempt harsh regulatory crackdowns while maintaining decentralization ideals.
The market is bifurcating into compliant CeFi hybrids and pure DeFi protocols, with liquidity increasingly flowing to regulated venues. This adaptation phase may determine which projects survive the coming regulatory wave.
