Hyperliquid Policy Center Urges SEC to Revise Crypto Regulatory Proposal

Key Facts

1The Hyperliquid Policy Center submitted five recommendations to the SEC urging changes to its proposed crypto regulatory framework.

2Requested changes include the treatment of token airdrops, automated buybacks, secondary trading, and developer protections.

The Hyperliquid Policy Center submitted five recommendations to the U.S. Securities and Exchange Commission (SEC) urging changes to its proposed crypto regulatory framework. CoinGape reported that the center requested revisions covering the treatment of token airdrops, automated buybacks, secondary trading, and developer protections.

The group is seeking to ensure that qualifying free token airdrops are not classified as investments and to clarify rules allowing platforms without SEC registration to facilitate eligible transactions. According to TokenPost, the recommendations also aim to provide legal safe harbors for developers without requiring them to admit to previous securities law violations, while distinguishing between automated and discretionary token buybacks.

The SEC's public comment period for these proposed cryptocurrency regulations is scheduled to close on October 20, 2026.