Hyperliquid Policy Center Pushes SEC for 5 Major Changes to Proposed Crypto Rules

The Hyperliquid Policy Center (HPC) has urged the US Securities and Exchange Commission to make 5 adjustments to its proposed Regulation Crypto Assets. The coverage group helps the proposal however stated some components want extra readability earlier than the principles are finalized. Its essential objective is to make it simpler for crypto initiatives to function within the United States with out going through pointless authorized uncertainty.

For years, crypto builders have struggled to perceive when their tokens fall below US securities legal guidelines. The SEC has taken steps to deal with these issues in 2026. In March, the company issued an interpretation overlaying how securities legal guidelines apply to a number of varieties of token distributions, together with airdrops.

Five months later, it proposed Regulation Crypto Assets. The proposal would enable token choices of up to $5 million over 4 years below a startup exemption. A separate fundraising exemption would enable up to $75 million in a 12-month interval. It would additionally introduce a secure harbor to make clear when a token is not tied to an funding contract.

HPC has now submitted a remark letter backing the proposal whereas asking the SEC to make 5 key refinements.

On Airdrops, Token Trading

The first issues airdrops. HPC wants the SEC to clearly state within the remaining rule that recipients who obtain tokens with out giving something in return haven’t made an funding of cash. Users could obtain tokens for utilizing a community, working validators, or offering liquidity. According to the group, these actions shouldn’t robotically make an airdrop an funding contract.

It additionally needs the SEC to affirm that routine steps, akin to connecting a pockets or finishing sanctions checks, don’t rely as cost for tokens.

The subsequent advice focuses on secondary buying and selling. HPC acknowledged the SEC wants to clarify how tokens distributed below the proposed exemptions may be traded and whether or not on-chain protocols and different intermediaries can facilitate these trades with out registering with the company.

Safe Harbor, Buybacks and Federal Protections

The third challenge includes the proposal’s secure harbor. The present certification necessities may put initiatives in a tough place. HPC defined that some builders could also be unable to certify that they’ve accomplished their important managerial work with out creating the impression that their tokens had been beforehand topic to securities legal guidelines. As such, the group needs initiatives to have the ability to use the secure harbor with out making that sort of admission. It additionally needs safety to cowl initiatives which are nonetheless growing their networks.

HPC’s fourth advice issues token buybacks. It needs the SEC to use a constant definition of an issuer throughout the rule and incorporate present employees steerage on buybacks. It additionally needs the company to distinguish computerized buybacks ruled by revealed guidelines from these selected a case-by-case foundation.

The fifth advice is about federal preemption. HPC needs federal protections to stay in place after a venture qualifies for the secure harbor. Under the present proposal, these protections would finish at that time, which might doubtlessly depart tokens topic to registration necessities throughout greater than 50 jurisdictions.

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