Hyperliquid Policy Center requests five clarifications to the SEC's proposed Regulation Crypto Assets, focusing on airdrop treatment, secondary trading, and safe harbor provisions.
Regulation & Gov ·
The Hyperliquid Policy Center has submitted a comment letter to the SEC backing its proposed Regulation Crypto Assets while requesting five specific clarifications. The group seeks to reduce legal uncertainty for crypto projects operating in the United States. The proposal establishes a $5 million startup exemption over four years and a $75 million fundraising exemption within a 12-month window, alongside a safe harbor defining when a token exits investment-contract status.
The HPC's five requests target distinct gaps in the rule's current language. On airdrops, the group wants explicit confirmation that recipients who obtain tokens without monetary exchange—through network participation, validator operation, or liquidity provision—are not investors, and that routine steps like wallet connection do not constitute payment. The HPC also seeks SEC guidance on how tokens can trade on secondary markets and whether on-chain protocols can facilitate such trades without registering. On safe harbors, it requests that projects qualify without admitting prior securities status and that coverage extend to networks still in development. The group additionally wants consistent issuer definitions across the rule and clearer distinctions between automatic and discretionary token buybacks, plus federal protections that survive safe harbor qualification to prevent multi-jurisdictional registration exposure.
What remains unclear is whether the SEC will incorporate these refinements into the final rule or maintain its current language.