‘Every single exchange’ will have to adopt public blockchain infrastructure to compete, Hyperliquid Policy Center CEO says

This is a significant statement that aligns perfectly with what we're seeing in the institutional adoption curve across the Gulf and globally. Chervinsky's point about exchanges needing public blockchain infrastructure isn't just regulatory posturing—it's a fundamental shift in how we'll structure crypto markets going forward. What excites me most is the implicit acknowledgment that onchain markets will enter the U.S. regulatory perimeter soon. This is the validation institutional investors, particularly sovereign wealth funds and family offices here in the UAE and Saudi Arabia, have been waiting for. We're talking about removing counterparty risk and settlement friction that currently plagues centralized exchange models. For BTC specifically, this regulatory clarity acts as a major tailwind. Institutional capital—the kind sitting in Abu Dhabi's PIF and similar vehicles—has been hesitant precisely because of regulatory uncertainty around market infrastructure. Once exchanges are forced to adopt transparent, auditable blockchain rails, you remove a massive friction point for institutional entry. This narrative is fundamentally bullish for Bitcoin as it strengthens the case for crypto as institutional-grade infrastructure. I'm looking at this as a 3-6 month catalyst, not a short-term trade. The transition will be messy and competitive, but it's ultimately reshaping the entire market structure in favor of transparency and compliance—exactly what institutional allocators want.