SEC Crypto Rules: Bitwise and Hyperliquid Seek Changes

Bitwise Asset Management and the Hyperliquid Policy Center are asking the US Securities and Exchange Commission (SEC) to clarify its proposed crypto rules, including token classification, airdrops, buybacks and secondary-market trading. The SEC’s public comment period closes Tuesday. It will then decide whether to revise, adopt or withdraw the proposal, but has not set a timetable for a final decision. Bitwise wants a clear standard for investment managers to determine from public information whether a crypto asset is subject to securities laws. It also seeks guidance on when managers can rely on an issuer’s filing to confirm that an investment contract has ended. The Hyperliquid Policy Center says the proposed safe harbor could come too late for some projects. It wants clearer protections for participation-based airdrops and guidance on token buybacks, unregistered intermediaries and trading through onchain protocols. Former SEC enforcement official John Reed Stark and Duke University scholar Lee Reiners have urged the agency to withdraw the proposal, arguing that it exceeds the SEC’s authority, could weaken investor protections and may face legal challenges. The SEC crypto rules remain a proposal and are not yet in effect. The outcome could shape token issuance and secondary-market access, leaving crypto firms and trading venues awaiting greater clarity.