The Hyperliquid Policy Center announced five recommendations on October 19 aimed at clarifying the SEC's proposed Regulation Crypto Assets framework, which was introduced in August. The framework offers two exemptions for qualifying cryptocurrency token sales: one allowing offerings of up to $5 million over four years and another permitting $75 million per year.
Airdrops and Trading Clarity
In its first recommendation, HPC requested that the SEC confirm that qualifying free token airdrops are not investments. The group also asked for guidance on decentralized trading protocols and intermediaries handling token resales under the proposed exemptions.
Buyback and Developer Protections
HPC urged the regulator to distinguish between automated token buybacks and case-by-case buybacks approved by developers. The organization also sought protections for networks still under development, allowing projects to receive legal protections without having their previously issued tokens classified as investment contracts. HPC requested clearer rules to enable platforms without SEC registration to facilitate eligible secondary trading transactions.
State Registration and Compliance
HPC's fifth recommendation concerns federal protections against separate state securities registration requirements, requesting that such protections remain in place after projects qualify for the proposed safe harbor.
The SEC set October 20 as the deadline for public comments on the proposed rules. The commission has not yet accepted the recommendations, and the proposed framework must still be formally considered before any modifications or adoption.
