Hyperliquid Surges on Speculation of US Approval and Stablecoin Deal
Hyperliquid (CRYPTO: HYPE) has been surging in value, hitting a record $95.95 on September 22, largely due to speculation that it will soon be allowed to operate in the US.
The Commodity Futures Trading Commission (CFTC) chair was working on bringing Hyperliquid into compliance with US regulations, according to President Trump's statement on August 19.
However, this does not necessarily mean that a change in policy is imminent. The CFTC has not announced any new filings or approvals related to Hyperliquid.
The coin's addressable market would significantly expand if it were allowed to operate in the US, and it may also attract institutional investment.
A more immediate reason to invest in Hyperliquid is its stablecoin reserve deal. 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. This is a tangible revenue boost for the company.
Hyperliquid's revenue from this deal will be used primarily for buybacks and burns of its coin, which will formally begin on October 3.