Is KYC Hyperliquid's Path to the US? On testnet, a new function was recently added to HIP-3 that allows deployers to set an allowlist for their markets. By adding a star payload, a DEX can restrict trading to approved addresses. In theory, this creates a path for permissioned access to Hyperliquid, which could become particularly important in regulated markets such as the US. US regulation has been one of Hyperliquid's largest constraints. Under the current framework, retail commodity derivatives generally need to trade on a CFTC-registered designated contract market and clear through a registered derivatives clearing organization, with customer access typically handled by a regulated broker. For this reason, Hyperliquid cannot simply open its existing perpetual markets to US users. Rather than continuing to operate in a regulatory grey area, Hyperliquid has been active in Washington, pushing to modernize these rules and establish a compliant pathway for onchain derivatives, with the longer-term goal of allowing regulated exchanges and brokers to use its market infrastructure. Still, even if this pathway were approved, questions would remain around how KYC, a necessary part of any US-compliant approach, would be implemented. Looking at testnet, we believe the answer sits at the HIP-3 deployer level. A compliant deployer could list permissioned markets, conduct KYC, and maintain the allowlist, while regulated brokers route verified users into those markets. These restrictions would apply only to that DEX, allowing Hyperliquid's native markets and other HIP-3 deployments to remain permissionless. A key concern is that permissioned access would require replicating existing markets, creating liquidity fragmentation that is antithetical to Hyperliquid's liquidity-layer thesis. However, because both markets would exist within the same composable environment, market makers could easily transfer liquidity and hedge between the two. In fact, the need to redeploy these markets creates a major opportunity for whichever HIP-3 deployer builds the permissioned venue across crypto and RWAs. It is unlikely that TradeXYZ assumes this role, leaving space for a traditional financial institution to capture deployer fees on all KYC flow routed through these markets. Though nothing is confirmed and the function is testnet-only, we see this as highly constructive for Hyperliquid, particularly given the ongoing regulatory discussions. If Hyperliquid is to house all of finance, some form of regulated access is inevitable. This model could introduce that access without displacing existing permissionless markets, while creating a strong economic incentive for a major regulated institution to take that role. H/T @rajivpoc for the discovery.