Hyperliquid

Paul Atkins

Hyper

United

The Hyperliquid (<a href="https://x.com/HyperliquidX" rel="noopener noreferrer nofollow">@HyperliquidX</a>) <a href="https://x.com/search?q=%24HYPE&amp;src=cashtag_click" rel="noopener noreferrer nofollow">$HYPE</a> Policy Center (HPC) has urged the US Securities and Exchange Commission to refine its proposed crypto asset rules, asking for clearer treatment of airdrops, secondary market trading and token buybacks.
<cite>HPC filed a comment letter supporting the SEC's proposed Regulation Crypto Assets, urging the regulator to adopt the rule with five refinements.</cite><cite>The letter was filed on October 19 ahead of an October 20 deadline on docket S7-2026-27.</cite>
<h2 id="what-hpc-is-asking-for">What HPC is asking for</h2>
On airdrops, <cite>HPC recommended that the SEC write into the rule the analysis that airdrops without consideration do not constitute an investment of funds. It also wants the rule to state that claiming steps such as wallet connection and sanctions screening should not count as payment.</cite> The group also wants the SEC to directly clarify how on-chain protocols and unregistered intermediaries can take part in secondary market trading of the relevant tokens.
On safe harbors, <cite>HPC believes the existing safe harbor should not require projects to default to acknowledging that their tokens were previously tied to an investment contract, and should cover projects still in development.</cite> On repurchases, <cite>its central request is that the SEC distinguish programmatic token buybacks running on published, verifiable rules from discretionary repurchases controlled by a central party.</cite><cite>HPC also wants a unified definition of "central party".</cite>
The group also says protections for qualifying tokens should remain durable across jurisdictions. <cite>Specifically, it wants federal preemption over state registration requirements to remain valid after a project satisfies the safe harbor.</cite>
<h2 id="the-sec-proposal-in-brief">The SEC proposal in brief</h2>
<cite>On Aug. 18, 2026, the SEC issued a 402-page proposing release for Regulation Crypto Assets, which would establish a standalone offering framework for certain investment contracts involving crypto assets.</cite><cite>The proposed rules include a startup exemption allowing offerings of up to $5 million during a four-year period, and a fundraising exemption allowing offerings of up to $75 million each year.</cite><cite>The proposal also includes a safe harbor codifying SEC guidance on when crypto assets issued under an investment contract are no longer subject to SEC oversight.</cite>
SEC Chairman Paul Atkins said <cite>the package of exemptions would facilitate capital formation and allow crypto asset innovation to flourish in the United States.</cite>
HPC's requests are recommendations only. <cite>None of them takes effect unless adopted in a final rule.</cite><cite>HPC launched in February with 1 million HYPE from the Hyper Foundation, and Jake Chervinsky runs it.</cite>
Sources:
<ul>
 <li><a href="https://crypto.news/hyperliquid-sec-crypto-regulation-proposals/" rel="noopener noreferrer nofollow">crypto.news: Hyperliquid Policy Center seeks five changes to SEC crypto rules</a></li>
 <li><a href="https://www.sec.gov/newsroom/speeches-statements/atkins-statement-regulation-crypto-assets-081826" rel="noopener noreferrer nofollow">SEC: Chairman Atkins statement on Regulation Crypto Assets</a></li>
 <li><a href="https://www.congress.gov/crs-product/LSB11480" rel="noopener noreferrer nofollow">Congressional Research Service: SEC Proposes Regulation Crypto Assets</a></li>
</ul>

Hyperliquid Policy Center Urges SEC to Rewrite Key Crypto Rules

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