Hyperliquid Policy Center Calls for Five Changes to SEC Crypto Rules
The Hyperliquid Policy Center has submitted a proposal urging the SEC to revise its crypto regulatory framework across five key areas: airdrops, token trading, buybacks, safe harbor eligibility, and federal protections. The submission seeks clearer rules to reduce regulatory ambiguity for crypto projects.
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Five Areas of Proposed Reform
The Hyperliquid Policy Center has called for SEC revisions to its crypto rules covering airdrops, secondary token trading, buybacks, safe harbor eligibility, and what it describes as "durable" federal protections for projects. The group argues that existing or proposed rules lack sufficient clarity on how these common token distribution and trading mechanisms should be classified and treated under securities law.
Regulatory Clarity as the Core Ask
The submission emphasizes the need for federal-level certainty rather than a patchwork of state-by-state approaches. By seeking explicit SEC guidance on airdrops and safe harbor criteria, the Policy Center aims to give projects a clearer path to compliance without resorting to geographic restrictions or more conservative tokenomics that may limit adoption.
Context
This intervention comes as the SEC continues to refine its approach to cryptocurrency regulation following enforcement actions against exchange and staking products over the past two years. Whether the regulator responds with formal rulemaking or revised guidance remains unclear.
Why It Matters
For Traders
Clearer SEC rules on token trading and buybacks could reduce enforcement risk for derivative and secondary-market trading venues, potentially widening liquidity access.
For Investors
Explicit safe harbor criteria and federal protections would lower legal uncertainty for token holders and project stakeholders evaluating long-term infrastructure investments.
For Builders
Formalized airdrop and buyback guidance could simplify tokenomics design and community distribution strategies, reducing the need for conservative compliance structures that limit protocol flexibility.
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