The Hyperliquid Policy Center (HPC) has urged the United States Securities and Exchange Commission to make five changes to its proposed regulation of crypto assets. The political group supports the proposal but said some parts require more clarity before the rules are finalized. Its main goal is to make it easier for crypto projects to operate in the United States without facing unnecessary legal uncertainty.
For years, cryptocurrency developers have struggled to understand when their tokens fall under U.S. securities laws. The SEC took steps to address these concerns in 2026. In March, the agency issued an interpretation explaining how securities laws apply to several types of token distributions, including airdrops.
Five months later, he proposed regulation of crypto assets. The proposal would allow token offerings of up to $5 million over four years under an exemption for startups. A separate fundraising exemption would allow up to $75 million over a 12-month period. This would also introduce a safe harbor to clarify when a token is no longer tied to an investment contract.
HPC has now submitted a comment letter supporting the proposal while asking the SEC to make five key improvements.
On Airdrops, token trading
The first concerns airdrops. HPC wanna the SEC must clearly state in the final rule that recipients who receive tokens without giving anything in return have not invested any money. Users can receive tokens for using a network, running validators, or providing liquidity. According to the group, these activities should not automatically make an airdrop an investment contract.
He also wants the SEC to confirm that routine steps, such as connecting a wallet or running sanctions checks, do not count as token payments.
The next recommendation focuses on secondary trading. HPC said the SEC must explain how tokens distributed under the proposed exemptions can be traded and whether on-chain protocols and other intermediaries can facilitate these trades without registering with the agency.
Safe Harbor, buyouts and federal protections
The third question concerns the safe harbor of the proposition. Current certification requirements could put projects in a difficult situation. HPC explained that some developers may not be able to certify that they have completed their essential management work without creating the impression that their tokens were previously subject to securities laws. As such, the group wants projects to be able to use safe harbor without making this kind of admission. She also wants protection to cover projects that are still developing their networks.
HPC’s fourth recommendation concerns token redemptions. He wants the SEC to use a consistent definition of an issuer throughout the rule and incorporate existing staff guidance on redemptions. She also wants the agency to distinguish between automatic buyouts governed by published rules and those decided on a case-by-case basis.
The fifth recommendation concerns federal preemption. HPC wants federal protections to remain in place once a project qualifies for the safe harbor. Under the current proposal, these protections would end at this point, which could leave tokens subject to registration requirements in more than 50 jurisdictions.
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