HPC Supports Regulation Crypto Assets Proposal and Proposes Five Amendments

The Hyperliquid Policy Center (HPC) has submitted a letter to the U.S. SEC in support of the Regulation Crypto Assets proposal put forward by the SEC in August 2026, urging its passage. The proposal allows startups to raise up to $5 million through token issuance within four years and permits projects to raise up to $75 million through financing exemptions within 12 months, while establishing safe harbor rules to clarify when tokens are no longer tied to investment contracts. HPC has made five recommendations: to incorporate the SEC's March guidance on airdrops into the final rule, clarifying that the steps to claim an airdrop do not constitute payment of consideration; to clarify the legal status of intermediaries in secondary market transactions and on-chain agreements, allowing tokens issued under exemptions to be freely traded from the outset; to allow projects to directly certify that their tokens are not tied to investment contracts, enabling the safe harbor to be utilized without presuming the existence of prior investment contracts, and to extend protections to projects still under development; to include the SEC staff's guidance on token buybacks in the final rule, standardizing the definition of "central party" and distinguishing between programmatic buybacks and those made by autonomous decisions; and to ensure that the effectiveness of federal priority continues to be retained after projects meet safe harbor conditions, avoiding the imposition of registration requirements from over 50 jurisdictions on tokens.

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