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ZEC $1,137 Hyperliquid Policy Center asks SEC to revise crypto asset rules
The group filed five recommendations one day before the SEC's comment deadline on its proposed Regulation Crypto Assets framework.
Key takeaways
- Five asks filed. The Hyperliquid Policy Center submitted five recommendations on the SEC's proposed framework.
- Deadline is October 20. The group filed one day before the SEC's October 20 comment deadline.
- Exemptions not approved. The draft mentions $5 million and $75 million exemptions, but neither is currently approved.
What happened
The Hyperliquid Policy Center has asked the U.S. Securities and Exchange Commission to change its proposed Regulation Crypto Assets framework. The group said it submitted five recommendations covering token airdrops, secondary trading, developer protections, buybacks and state securities requirements.
On airdrops, the group wants the SEC to write its existing interpretation into the final rule. It argues that receiving tokens without payment or other consideration generally does not meet the investment-of-money test for an investment contract. It also says routine steps such as wallet connections and sanctions screening should not turn a free distribution into a securities transaction.
The group also seeks clearer rules for platforms that handle token resales without SEC registration, and it wants automated token repurchases separated from buybacks directed by centralized project operators. It asks for legal protection for developers still building networks without an admission that earlier token issuances were investment contracts. Its fifth recommendation concerns federal protection from separate state securities registration requirements.
First $91.67Latest $79.00-13.8% over the period
Points are daily observations, not closing prices.
Why it matters
The filing lands one day before the SEC's October 20 deadline for public comments on the framework. The agency proposed the rules in August 2026 to create registration exemptions for certain investment contracts involving cryptocurrencies.
Under the draft, qualifying projects could raise up to $5 million over four years through a startup exemption or up to $75 million within a 12-month period through a separate fundraising exemption. Neither provision is currently an approved exemption, and the final rules may differ from the proposal.
The group's requests build on earlier work. In March, the SEC and the Commodity Futures Trading Commission issued a joint interpretation on how federal securities laws apply to activities including airdrops and staking. On October 1, the group asked the Ministry of Finance for consistent treatment of financial products involving blockchain.
What is still unclear
- The SEC has not accepted the recommendations, and the proposed rules still have to be reviewed and may be revised.
- The group's request to European regulators concerned perpetual futures and was sent to the Ministry of Finance, but the reports do not say how that request was received.
Questions readers ask
What does the Hyperliquid Policy Center want from the SEC?
It wants five changes to the proposed Regulation Crypto Assets framework. These cover token airdrops, secondary trading, automated buybacks, developer protections and state securities requirements.
When does the SEC comment period on Regulation Crypto Assets close?
The public comment period closes October 20. The group filed its letter on October 19, one day before that deadline.
What exemptions are in the SEC's draft framework?
The draft describes a startup exemption of up to $5 million over four years and a separate fundraising exemption of up to $75 million within a 12-month period. Neither is currently an approved exemption.
Are the proposed SEC crypto rules final?
No. The proposal was published in August 2026 and remains subject to review and revision, and the SEC has not accepted the group's recommendations.
