Hyperliquid Policy Center urges five changes to SEC's proposed crypto asset rules

what happened

The group praised the SEC for trying to spell out how securities rules cover digital assets, according to NewsBTC. Still, the Hyperliquid Policy Center argues that some details on distributions and trading could create needless obstacles for token developers and markets.

In a comment dated October 19, the organization asked the regulator to revise its Regulation Crypto Assets proposal in five areas. These include the treatment of administrative steps in airdrops, the conditions under which tokens may trade after an exempt offering, and whether the safe harbor provides enough protection for mature projects. It also seeks clearer standards for token buybacks and a more consistent link between federal exemptions and state rules.

The comment is not a regulatory decision. The final outcome will depend on how the commission responds to the objections and evidence it receives during the rulemaking process.

why it matters

The core issue is that a token may start within a fundraising arrangement and later circulate among many users who never deal with its issuer. Older securities tests make that transition hard to define, so the final version of these rules could shape how US trading venues and crypto projects operate.

market impact

Crypto tokens and US trading venues: clearer SEC rules could reduce regulatory uncertainty, though the proposal is not final.

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