Hyperliquid Aims to Shape MiCA's Decentralized Future

The Hyperliquid Policy Committee has submitted feedback to the European Commission on the future development of the Markets in Crypto-Assets Regulation (MiCA). The submission aims to influence how European policymakers approach the regulation of decentralized protocols whose underlying software can operate without a company directly controlling users' funds or approving individual transactions.

MiCA was primarily designed around identifiable issuers and crypto-asset service providers, but decentralized protocols create a more difficult regulatory question. The policy question is not simply whether an application calls itself decentralized, but whether an identifiable person or company actually exercises control over activities that would ordinarily require authorization.

The submission comes as the EU moves beyond MiCA's initial implementation and evaluates gaps exposed by the continued development of digital-asset markets. The European Commission is not required to adopt the recommendations, and any substantial expansion or amendment of MiCA would need to proceed through the EU's legislative and regulatory processes.