Why Crypto Regulators Are Turning to Industry Experts for Technical Guidance
Policymakers worldwide are increasingly relying on industry expertise to craft effective crypto regulation, and a major industry alliance just expanded its roster to deepen that technical knowledge. The Crypto Council for Innovation (CCI), a global advocacy organization representing leading blockchain firms, welcomed three new members on July 16, 2026: Etherealize, Hyperliquid Policy Center, and Tools for Humanity. The additions signal a broader shift in how regulators approach digital asset policy, moving beyond theoretical frameworks toward practical guidance from firms actively building the technology.
What Is the Crypto Council for Innovation and Why Does It Matter?
The CCI functions as a bridge between the crypto industry and government policymakers across multiple jurisdictions. With teams stationed in Washington D.C., New York, San Francisco, Brussels, London, and Hong Kong, the organization advocates for evidence-based policies that support blockchain innovation while maintaining responsible oversight. The council's influence extends across a critical moment in global crypto regulation, as major jurisdictions are simultaneously building out their frameworks.
The timing of these new memberships reflects the urgency regulators face. Congress is currently drafting market structure and digital asset tax legislation, the U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) are advancing regulatory clarity for onchain markets, and banking regulators are implementing a framework called GENIUS. Meanwhile, the European Union has completed its transition period for MiCA (Markets in Crypto-Assets Regulation), the United Kingdom has finalized its cryptoasset rules ahead of a 2027 commencement date, and jurisdictions across Asia continue building their regulatory frameworks.
How Are the New Members Strengthening Policy Expertise?
Each new member brings specialized knowledge to address specific gaps in policymakers' understanding of the crypto ecosystem:
- Etherealize: Focuses on institutional finance adoption on Ethereum, the second-largest blockchain network. The firm brings expertise on how regulatory frameworks can evolve alongside scaling institutional capital markets on decentralized networks.
- Hyperliquid Policy Center: Specializes in perpetual futures markets, which are among the most actively traded crypto derivatives. The organization advocates for clear U.S. rules that would allow Americans to lawfully access onchain perpetual futures, a market structure that predates current regulatory frameworks.
- Tools for Humanity: Contributes expertise on digital identity solutions, a critical infrastructure component for compliance and user verification across crypto platforms.
"Strong policy depends on technical input from the firms closest to the work. These members represent some of the largest ecosystems and deepen expertise across a variety of critical issues including onchain markets, tokenization, digital identity, and more," said Ji Hun Kim, Chief Executive Officer of the Crypto Council for Innovation.
Ji Hun Kim, Chief Executive Officer, Crypto Council for Innovation
The expansion reflects CCI's broader growth trajectory. Beyond welcoming new members, the organization has launched two specialized initiatives: the Vault Coalition, which develops legal and policy analysis on the regulatory treatment of onchain vault structures (a mechanism for holding digital assets), and the Digital Energy Council, which focuses on energy development, grid resilience, and digital asset infrastructure. CCI's research team has also expanded its published analysis, recently covering topics including building under the UK's new regulatory regime, the tax treatment of staking (the process of locking up cryptocurrency to validate blockchain transactions), and how market structure legislation can prevent innovation from moving offshore.
Why Are Regulators Seeking Industry Technical Expertise?
The crypto industry moves faster than traditional regulatory frameworks can accommodate. Perpetual futures markets, institutional tokenization, and onchain vault structures represent financial innovations that didn't exist when most crypto regulations were drafted. Regulators face a genuine knowledge gap: they need to understand how these systems work technically before they can write rules that are both effective and feasible to implement.
"Institutional finance is moving beyond pilots and into production on Ethereum. As adoption begins to scale, now is the opportunity to ensure the regulatory framework evolves alongside the technology," said Vivek Raman, Co-Founder and Chief Executive Officer of Etherealize.
Vivek Raman, Co-Founder and Chief Executive Officer, Etherealize
This approach differs from enforcement-first regulation. Rather than waiting for problems to emerge and then penalizing firms, regulators are proactively seeking input from companies building the infrastructure. The CCI model allows policymakers to understand technical constraints and possibilities before finalizing rules, potentially reducing the need for costly revisions later.
"Perpetual futures are the most actively traded market in crypto, and the onchain version is one of our industry's best contributions to finance. But Americans can't lawfully access it, because our own rules were written before this architecture existed. At HPC, we advocate for clear rules and a path for these markets to exist in the U.S.," said Jake Chervinsky, Founder and Chief Executive Officer of Hyperliquid Policy Center.
Jake Chervinsky, Founder and Chief Executive Officer, Hyperliquid Policy Center
What Does This Mean for the Future of Crypto Regulation?
The CCI's expansion suggests that global regulators are moving toward a collaborative model where industry expertise informs policy development. This approach has already influenced major regulatory initiatives: the EU's MiCA framework, the UK's cryptoasset rules, and ongoing U.S. legislative efforts all reflect input from industry stakeholders. By formalizing these relationships through organizations like the CCI, regulators gain access to real-time technical knowledge as markets evolve.
The challenge ahead is balancing innovation with consumer protection. Regulators must write rules that are technically feasible and don't inadvertently push innovation to less-regulated jurisdictions, while also ensuring that retail investors and consumers are adequately protected. The CCI's role is to provide the technical foundation for that balance, helping policymakers understand what's possible and what trade-offs different regulatory approaches entail.
As crypto markets mature and institutional adoption accelerates, the demand for this kind of expert input will likely grow. The three new members joining the CCI represent a recognition that effective regulation requires deep technical knowledge from the firms building the future of digital finance.