Hyperliquid Policy Center Endorses SEC Proposed Crypto Asset Rules, Submits Five Amendment Recommendations

The Hyperliquid Policy Center (HPC) submitted a comment letter to the U.S. SEC on October 19, expressing support for the proposed "Regulatory Framework for Crypto Assets" and putting forward five targeted amendment suggestions: formalize the classification of qualified airdrops in the final rules to clarify that claiming airdrops and conducting compliant operations do not constitute consideration for payment; clarify the intermediary status of secondary market trading activities and on-chain protocols; allow projects to utilize the safe harbor without being required to implicitly acknowledge that their tokens were previously part of an investment contract, and extend regulatory protections to the project development phase; incorporate formal token repurchase guidelines that distinguish between automatically executed repurchases operating under pre-defined rules and discretionary repurchases; ensure that exemptions from state-level registration requirements remain in full effect after a project meets all safe harbor eligibility criteria. The proposed SEC rules would permit early-stage projects to issue up to $5 million worth of tokens over a four-year period, with an additional financing exemption capped at $75 million per 12-month window.

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