The Hyperliquid Coverage Middle (HPC) has urged the US Securities and Trade Fee to make 5 modifications to its proposed Regulation Crypto Belongings. The coverage group helps the proposal however mentioned some components want extra readability earlier than the principles are finalized. Its fundamental aim is to make it simpler for crypto tasks to function in the USA with out dealing with pointless authorized uncertainty.
For years, crypto builders have struggled to know when their tokens fall below US securities legal guidelines. The SEC has taken steps to deal with these considerations in 2026. In March, the company issued an interpretation overlaying how securities legal guidelines apply to a number of kinds of token distributions, together with airdrops.
5 months later, it proposed Regulation Crypto Belongings. The proposal would enable token choices of as much as $5 million over 4 years below a startup exemption. A separate fundraising exemption would enable as much as $75 million in a 12-month interval. It will additionally introduce a secure harbor to make clear when a token is now not tied to an funding contract.
HPC has now submitted a remark letter backing the proposal whereas asking the SEC to make 5 key refinements.
On Airdrops, Token Buying and selling
The primary considerations airdrops. HPC desires the SEC to obviously state within the ultimate rule that recipients who obtain tokens with out giving something in return haven’t made an funding of cash. Customers might obtain tokens for utilizing a community, working validators, or offering liquidity. In line with the group, these actions shouldn’t robotically make an airdrop an funding contract.
It additionally desires the SEC to verify that routine steps, corresponding to connecting a pockets or finishing sanctions checks, don’t depend as cost for tokens.
The following advice focuses on secondary buying and selling. HPC said the SEC wants to elucidate how tokens distributed below the proposed exemptions might be traded and whether or not on-chain protocols and different intermediaries can facilitate these trades with out registering with the company.
Secure Harbor, Buybacks and Federal Protections
The third concern entails the proposal’s secure harbor. The present certification necessities may put tasks in a tough place. HPC defined that some builders could also be unable to certify that they’ve accomplished their important managerial work with out creating the impression that their tokens have been beforehand topic to securities legal guidelines. As such, the group desires tasks to have the ability to use the secure harbor with out making that form of admission. It additionally desires safety to cowl tasks which might be nonetheless creating their networks.
HPC’s fourth advice considerations token buybacks. It desires the SEC to make use of a constant definition of an issuer throughout the rule and incorporate current workers steering on buybacks. It additionally desires the company to differentiate automated buybacks ruled by printed guidelines from these selected a case-by-case foundation.
The fifth advice is about federal preemption. HPC desires federal protections to stay in place after a venture qualifies for the secure harbor. Underneath the present proposal, these protections would finish at that time, which might probably go away tokens topic to registration necessities throughout greater than 50 jurisdictions.
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