Hyperliquid Policy Center urges SEC to clarify airdrop and token buyback rules

The Hyperliquid Policy Center (HPC) has urged the US Securities and Exchange Commission (SEC) to adopt its proposed Regulation Crypto Assets framework with five revisions aimed at providing greater legal clarity for crypto developers and token holders. In an October 19 comment letter, the advocacy group supported the SEC’s proposal, which would allow qualifying crypto projects to raise up to $5 million over four years under a startup exemption or up to $75 million annually under a separate fundraising exemption. The framework, introduced in August, would also establish a safe harbor for tokens no longer associated with investment contracts and provide exemptions from certain state securities registration requirements. Hyperliquid Policy Center seeks clearer rules for airdrops and token trading HPC recommended that the SEC formally establish that token airdrops do not constitute securities transactions when recipients provide no tangible consideration in exchange. The group argued that administrative requirements, such as connecting a wallet or completing sanctions screening, should not be treated as payment for tokens. It also called for clearer rules governing secondary market tra...