Hyperliquid Price Surges as Regulatory Approval Speculation Grows

Hyperliquid's token price surged to $95.95 on September 22, partly due to speculation that it will soon be allowed to operate in the US. The Commodity Futures Trading Commission (CFTC) chair is reportedly working to bring Hyperliquid into compliance with US laws.

However, President Trump's statement on August 19 that the CFTC was 'working very hard' to allow Hyperliquid does not necessarily mean approval is imminent. Trump's remark may be a general expression of support rather than a specific announcement of regulatory approval.

A more tangible reason to invest in Hyperliquid right now is its stablecoin reserve deal, which has been generating significant revenue for the company. Since August 26, Coinbase Global and Circle Internet Group have passed on about 90% of the cost-adjusted yield generated by the cash equivalents and Treasuries backing the USDC stablecoins parked on Hyperliquid.

The transfer of this new income stream to buybacks and burns of Hyperliquid's coin will begin on October 3, providing a roughly 30% revenue boost for the company. This could lead to increased investor interest in the token and drive up its price further.