The Hyperliquid Policy Center (HPC) has submitted a comment letter to the U.S. Securities and Exchange Commission (SEC), proposing five specific amendments to the SEC’s proposed Regulation Crypto Assets. The primary objective of these proposed changes is to provide greater clarity and reduce legal uncertainty for crypto projects operating within the United States.
HPC supports the SEC’s proposal but has identified areas requiring refinement before the rules are finalized. According to the group, its main goal is to make it easier for crypto projects to operate in the U.S. without facing unnecessary legal uncertainty. For years, crypto developers have struggled to understand when their tokens fall under U.S. securities laws.
Background: SEC’s Recent Actions
The SEC issued an interpretation in March detailing how securities laws apply to various token distributions, including airdrops. Five months later, the SEC proposed Regulation Crypto Assets. This proposal includes provisions such as a startup exemption for token offerings up to $5 million over four years, and a separate fundraising exemption allowing up to $75 million in a 12-month period. The proposal also introduces a safe harbor intended to clarify when a token is no longer considered an investment contract.
HPC’s Key Proposals
HPC’s first recommendation concerns airdrops, asserting that recipients who receive tokens without providing anything in return have not made an investment of money. HPC wants the SEC to suggest that routine actions, such as connecting a wallet or completing sanctions checks, do not constitute payment for tokens. This clarification aims to address potential ambiguities surrounding the definition of an investment of money in the context of token distributions.
The second recommendation focuses on secondary trading. HPC is seeking clarification on how tokens initially distributed under exemptions can be traded subsequently. This addresses a key uncertainty for projects regarding the ongoing liquidity and tradability of their tokens after initial distribution.
Regarding the safe harbor provision, HPC’s third recommendation suggests that projects should be able to utilize it without admitting that their tokens were previously subject to securities laws. The group explained that the current certification requirements could place projects in a difficult position, potentially preventing them from using the safe harbor without creating an adverse implication about their past token status.
HPC’s fourth recommendation addresses token buybacks, requesting a consistent definition of an issuer and the incorporation of existing staff guidance. This aims to ensure clarity and predictability in how buyback programs are treated under the proposed regulation.
Finally, the fifth recommendation pertains to federal preemption. HPC wants federal protections to remain in place after a project qualifies for the safe harbor. Under the current proposal, these protections might end, potentially subjecting tokens to registration requirements across numerous jurisdictions.
The proposed changes by HPC aim to navigate the complex regulatory landscape, ensuring that the SEC’s framework supports innovation while providing necessary investor protections. The group’s input highlights ongoing efforts within the crypto industry to achieve greater regulatory certainty in the United States.
Why This Matters
The materials describe a narrow update: HPC has urged the SEC to make five specific changes to its proposed Regulation Crypto Assets to provide more clarity and reduce legal uncertainty for crypto projects operating in the US. When tokens fall under US securities laws.
Broader Context
Source materials place the factual news in this context: The SEC has taken steps to address these concerns in 2026.
