Hyperliquid Policy Center Seeks Five SEC Crypto Rule Changes
The Hyperliquid Policy Center (HPC) supports the US Securities and Exchange Commission’s proposed Regulation Crypto Assets, but asked the agency to make five changes in a comment letter submitted on 19 October. The Hyperliquid Policy Center says clearer rules could reduce legal uncertainty for US crypto projects.
Its recommendations cover airdrop protections, definitions of intermediaries in secondary-market and on-chain trading, safe-harbor eligibility, token buybacks and federal protections. HPC wants the SEC to clarify that receiving tokens without payment does not automatically count as investing money, and to explain whether exempt tokens can trade through on-chain protocols without intermediaries registering. It also seeks a safe harbor that does not presume a token was previously part of an investment contract, protections for project development, guidance distinguishing automatic from discretionary buybacks, and continued state-registration exemptions for qualifying projects.
The SEC proposal would let startups issue up to $5 million in tokens over four years and create a separate fundraising exemption capped at $75 million in any 12-month period. The proposals are not final rules. For traders, the debate could affect the regulatory outlook for US-based token projects, but it does not directly change HYPE’s fundamentals or establish an immediate market catalyst.
Neutral
The SEC rulemaking discussion may have a limited short-term effect on HYPE: HPC’s support and proposed changes are advocacy, not an adopted rule, and the summaries report no direct change to Hyperliquid’s operations, token economics or demand. Traders may watch for regulatory headlines, but the news alone does not provide a clear directional catalyst for HYPE.
Over the longer term, clearer US rules for airdrops, token trading and safe-harbor eligibility could reduce compliance uncertainty for crypto projects, potentially supporting broader participation and market stability. Conversely, the final rules could differ from HPC’s recommendations or impose requirements that constrain some projects. Until the SEC acts and any effects on Hyperliquid become concrete, the likely price impact on HYPE remains neutral.