Hyperliquid Policy Center endorses SEC crypto asset framework, proposes five fixes
Regulation & Gov ·
The group says it supports the agency's Regulation Crypto Assets effort but wants changes to how airdrops, token resales, and safe harbor provisions are treated.
The Hyperliquid Policy Center has formally voiced support for the SEC's Regulation Crypto Assets initiative while submitting five specific recommendations aimed at refining the proposal's treatment of token distribution and trading mechanics. The committee's position was outlined on X, marking a direct engagement by a crypto-native policy body with an active federal rulemaking process.
Among the areas flagged for revision are rules governing airdrops, the resale of tokens by recipients, and the scope of safe harbor protections meant to shield early-stage projects from premature securities enforcement. These three categories sit at the center of longstanding uncertainty for token issuers, since the moment a distribution or resale is classified as a securities transaction, it can trigger registration and disclosure obligations that many crypto projects are not structured to meet.
The submission aligns with a broader pattern of commentary coming from the Hyperliquid Policy Center, which separately proposed clearer rules to the SEC covering token airdrops, secondary trading, and buybacks, as reported by wublockchain.xyz. Together, the two submissions suggest the committee is pressing regulators on overlapping but distinct fronts: how tokens first reach holders, and how those holders can subsequently trade or redeem them.
The engagement comes as the SEC works through a wider set of crypto-related policy questions, including how broker-dealer registration applies to crypto transaction interfaces and how tokenized securities should be recorded and traded. Other market participants have also sought clarity through formal channels, with Ondo Finance requesting a no-action letter to record tokenized securities on Ethereum, illustrating that direct requests to the agency are becoming a more common tactic across the industry rather than an isolated move by Hyperliquid's committee.
What remains unresolved is whether the SEC will adopt any of the five recommended changes, and in what form. The agency has not indicated a timeline for responding to the Hyperliquid Policy Center's submission, and it is unclear how the airdrop, resale, and safe harbor proposals would interact with other pending elements of the Regulation Crypto Assets framework, including the broker-dealer guidance and market-structure reforms already under discussion. Whether other industry groups file similar or competing recommendations in response to the same proposal is also not yet known.