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Hyperliquid lobbying organization responds to regulatory pressure from CME and ICE: On-chain transparency is more helpful in combating market manipulation

In response to Bloomberg's report on CME and ICE pressuring the CFTC regarding Hyperliquid, the Hyperliquid Policy Center, a lobbying organization led by prominent crypto lawyer Jake Chervinsky and funded by the Hyper Foundation, tweeted that the concerns lack basis.The organization stated that Hyperliquid publishes complete on-chain transaction records in real-time, with transparency far exceeding that of traditional exchanges, which serves as a strong deterrent against insider trading and price manipulation, and is beneficial for regulatory agencies and law enforcement to conduct monitoring and investigations.Additionally, Hyperliquid offers 24/7 uninterrupted trading, effectively eliminating price gaps between the opening and closing of traditional markets. The organization acknowledged that current U.S. laws have not yet made specific provisions for on-chain derivatives markets and will continue to work with Washington policymakers to promote the implementation of relevant regulatory frameworks.Previously, the Hyperliquid Policy Center was established on February 18 of this year in Washington, with former Blockchain Association and Variant Chief Legal Officer Jake Chervinsky serving as CEO, receiving a donation of 1 million HYPE from the Hyper Foundation, focusing on promoting a compliant regulatory path for DeFi in the United States.

The U.S. SEC has postponed the review of the first batch of prediction market ETFs, which are linked to real events such as election outcomes and economic recessions

According to Reuters, the U.S. Securities and Exchange Commission (SEC) has delayed the review of the first batch of predictive market ETFs, resulting in the postponement of more than 24 products originally scheduled for launch. Insiders revealed that the SEC is requesting issuers to provide further clarification on product mechanisms and information disclosure details, and this delay is expected to be temporary.Issuers such as Roundhill Investments, Bitwise Asset Management, and GraniteShares submitted applications in February this year to launch ETF products linked to real-world events such as election results, economic recessions, tech layoffs, and oil prices.According to SEC rules, ETF applications typically become effective automatically 75 days after submission unless the regulatory agency intervenes. Currently, Roundhill has set May 5 as the effective date, and Bitwise and GraniteShares' products are also expected to launch around the same time. The market is closely watching whether the SEC will ultimately approve these products that open up the "event contract" asset class.Bitwise Chief Investment Officer Matt Hougan stated, "This is a rapidly maturing field, and regulation is maturing in parallel," noting that innovative products like Bitcoin ETFs have also gone through a lengthy review process but ultimately launched successfully.

Andre Cronje: Nowadays, many DeFi protocols are no longer true DeFi in the real sense, and the industry is debating whether a circuit breaker mechanism should be introduced

Andre Cronje stated in an interview with Cointelegraph that many DeFi protocols today are "no longer truly DeFi" and are more like "profit-driven companies operated by teams," as they generally rely on upgradable contracts, multi-signatures, off-chain infrastructure, and manual operational control.Cronje pointed out that the current industry is still overly focused on smart contract audits while neglecting operational risks that are closer to traditional finance (TradFi). He believes that recent attack incidents are not due to code vulnerabilities but stem from off-chain infrastructure, permission management, and social engineering attacks.The discussion arises from the recent frequent security incidents in DeFi. In April, protocols such as Flying Tulip, Drift Protocol, and Kelp encountered security events, with Drift and Kelp suffering losses of approximately $280 million and $293 million, respectively.In response, Flying Tulip has introduced a "Withdrawal Circuit Breaker," which can delay or queue withdrawal requests when unusually large withdrawals occur, allowing the team about 6 hours to respond. Cronje emphasized that this mechanism does not permanently freeze withdrawals but serves as a layer of protection within the security system.However, Michael Egorov holds a cautious attitude towards this. He stated that the circuit breaker itself could also become a new point of centralized risk. If control permissions fall into the hands of an attacker, the mechanism originally intended to protect the protocol could instead be used to freeze assets or directly transfer funds.Egorov believes that the long-term direction of DeFi should be to minimize human intervention and centralized permissions as much as possible, rather than adding more layers of manual control. "The security of DeFi comes from decentralization, not more human management."
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