The Hyperliquid Policy Center filed comments with the SEC on Oct. 19, asking the agency to revise its proposed Regulation Crypto Assets framework in five areas. The group said it supports the SEC's effort to clarify how securities law applies to crypto assets, but warned that the current details around distributions and trading could create unnecessary barriers.
The submission is a comment letter, not a regulatory decision. The SEC's proposal is meant to give crypto assets more predictable treatment under decades-old securities tests.
Where the group wants changes
Two of the five requests target the lifecycle of a token distribution. One concerns how the administrative steps in a token airdrop are treated. The other concerns how tokens can trade after an exempt distribution.
The group also questions whether the proposed safe harbour offers clear enough protection once a project has matured. And it wants clearer rules for token buybacks.
The fifth request is about consistency: the group seeks a uniform approach to how federal exemptions interact with state securities requirements.
The hard part of the proposal
The SEC's framework is built around a familiar tension. A network token may start life as a fundraising arrangement, then later circulate among thousands of traders and users without direct involvement from the original issuer.
That shift is the core regulatory challenge the proposal tries to address. But industry participants still disagree about where the line between fundraising and decentralized circulation should fall.
The Hyperliquid Policy Center's letter leans into that gap. Its questions about the safe harbour suggest the group thinks the proposal may not fully account for what happens after a project matures and control spreads out.
What the SEC does with it
The comment period gives the agency a record of objections and evidence to weigh. The final rulemaking outcome depends on how the SEC responds to those submissions.
There's no deadline in the facts for the next step, and no signal yet on whether the SEC will adopt any of the five changes. What's clear is that the fight over the proposal is now about the details — airdrops, secondary trading, buybacks and the federal-state seam — rather than whether the SEC should write rules at all.
The Hyperliquid Policy Center's Oct. 19 letter is one entry in that record. Others will follow before the SEC moves to a final rule.
