Executive Branch and Onshoring Efforts
The Trump administration is pushing to onshore major crypto platforms, including derivatives exchange Hyperliquid, as part of a broader strategy to expand domestic crypto infrastructure. This initiative reflects a shift toward bringing previously offshore-oriented platforms into U.S. regulatory jurisdiction.
However, security concerns have emerged around these efforts. Blockchain data reviewed by CoinDesk shows that wallets tied to North Korea's Lazarus Group have moved tens of millions of dollars on Hyperliquid, selling more than $30 million in bitcoin on the platform in the three weeks prior to reporting. The simultaneous push to onshore platforms and evidence of illicit actor activity raises questions about compliance and surveillance capacity during the transition period.
Regulatory Debate on Derivatives and Custody Standards
Former SEC and CFTC officials are urging a lighter regulatory touch on cryptocurrency perpetuals trading to facilitate onshoring. With the Clarity Act stalled in congressional recess, the agencies are proceeding independently on crypto derivatives and custody rules. Former officials have warned that overly burdensome regulations risk keeping the estimated $90 trillion perpetuals market offshore, undermining the administration's onshoring objectives.
