# Hyperliquid Policy Center

**Type:** Nonprofit advocacy organization  
**Founded:** February 18, 2026  
**Location:** Washington D.C.  
**Funding:** $29M in HYPE tokens  
**Parent:** Hyperliquid  
**Status:** Active  

## Overview

The Hyperliquid Policy Center is a Washington D.C.-based nonprofit advocacy organization focused on regulatory frameworks for decentralized exchanges, perpetual futures, and blockchain-based market infrastructure.

## Funding Model

The Policy Center represents a novel mechanism in crypto governance: community-funded regulatory lobbying. The $29M allocation comes directly from HYPE token value, which derives from protocol revenue generated by trader fees. This creates an alignment chain where regulatory investment connects to token holder returns:

1. Protocol generates revenue from trader fees
2. Revenue accrues to HYPE token value
3. Community allocates HYPE tokens to Policy Center
4. Policy Center advocates for favorable DEX perpetuals regulation
5. Favorable regulation benefits Hyperliquid as market leader
6. Increased protocol usage increases revenue, benefiting HYPE holders

## Strategic Context

The Policy Center launch coincided with:
- CFTC ANPRM on prediction markets (March 2026)
- CLARITY Act Congressional discussion (2026 session)
- Hyperliquid's Ripple Prime integration (early February 2026)

This timing suggests a two-track institutional strategy: capture institutional liquidity through prime brokerage access while simultaneously shaping the regulatory environment.

## Significance

The $29M scale is comparable to major financial incumbent lobbying budgets, demonstrating that community-owned protocols without VC backing can generate sufficient capital surplus to fund regulatory advocacy that VC-backed protocols typically defer to their investors.

## Timeline

- **2026-02-18** — Launched with $29M HYPE token allocation

## Sources

- CoinDesk: https://www.coindesk.com/policy/2026/02/18/hyperliquid-starts-defi-lobbying-group-with-usd29-million-token-backing
- Fortune: https://fortune.com/crypto/2026/01/12/hyperliquid-jeff-yan-defi-perpetuals-perps-decentralization-growing-up/