Hyperliquid urges SEC to clarify crypto rules and airdrops

7.4 Regulation

Oct 19, 2026

Hyperliquid urges the SEC to revise crypto rules, seeking clarity on airdrops, secondary trading, buybacks, developer protections, and federal preemption.

The Hyperliquid Policy Center has submitted a comment letter to the U.S. Securities and Exchange Commission (SEC), urging revisions to the proposed Regulation Crypto Assets framework. While supporting the SEC’s initiative, the group recommends five key changes: clearer legal treatment for airdrops, expanded secondary trading options, enhanced developer protections, distinctions between automated and centralized token buybacks, and durable federal preemption once projects meet regulatory requirements. The proposals clarify that unpaid airdrops should not be considered an investment of money, allow exempt tokens to trade via onchain protocols, and ensure consistent definitions of control. The SEC’s draft framework currently includes exemptions for token offerings up to $5 million over four years and $75 million in a 12-month period. Hyperliquid argues these changes are vital to resolve outstanding questions for developers and token holders, particularly in decentralized networks, and to ensure the framework fosters innovation while providing regulatory clarity. The public consultation period closes on October 20, 2026.