The Hyperliquid Policy Center (HPC) has urged the US Securities and Exchange Commission to make five changes to its proposed Regulation Crypto Assets. The policy group supports the proposal but said some parts need 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, crypto developers have struggled to understand when their tokens fall under US securities laws. The SEC has taken steps to address these concerns in 2026. In March, the agency issued an interpretation covering how securities laws apply to several types of token distributions, including airdrops.
Five months later, it proposed Regulation Crypto Assets. The proposal would allow token offerings of up to $5 million over four years under a startup exemption. A separate fundraising exemption would allow up to $75 million in a 12-month period. It 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 backing the proposal while asking the SEC to make five key refinements.
On Airdrops, Token Trading
The first concerns airdrops. HPC wants the SEC to clearly state in the final rule that recipients who receive tokens without giving anything in return have not made an investment of money. Users may 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.
It also wants the SEC to confirm that routine steps, such as connecting a wallet or completing sanctions checks, do not count as payment for tokens.
The next recommendation focuses on secondary trading. HPC stated the SEC needs to explain how tokens distributed under the proposed exemptions can be traded and whether on-chain protocols and other intermediaries can facilitate those trades without registering with the agency.
Safe Harbor, Buybacks and Federal Protections
The third issue involves the proposal’s safe harbor. The current certification requirements could put projects in a difficult position. HPC explained that some developers may be unable to certify that they have completed their essential managerial 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 the safe harbor without making that kind of admission. It also wants protection to cover projects that are still developing their networks.
HPC’s fourth recommendation concerns token buybacks. It wants the SEC to use a consistent definition of an issuer across the rule and incorporate existing staff guidance on buybacks. It also wants the agency to distinguish automatic buybacks governed by published rules from those decided on a case-by-case basis.
The fifth recommendation is about federal preemption. HPC wants federal protections to remain in place after a project qualifies for the safe harbor. Under the current proposal, those protections would end at that point, which would potentially leave tokens subject to registration requirements across more than 50 jurisdictions.
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