The Hyperliquid Policy Center (HPC) has urged the U.S. Securities and Exchange Commission (SEC) to refine its proposed crypto regulations. The organization wants clearer rules for token airdrops, secondary trading, project exemptions, and token buybacks. Its recommendations aim to reduce legal uncertainty and encourage blockchain developers to build within the United States.
HPC Targets Airdrop and Trading Restrictions
HPC supports the SEC’s proposed Regulation Crypto Assets, which includes exemptions for startup offerings worth up to $5 million over four years. Additionally, qualifying fundraising could reach $75 million within any 12-month period.
However, HPC argues that regulators must clarify when free token distributions fall outside securities laws. It also wants clearer guidance for platforms and blockchain protocols facilitating secondary trades. Consequently, developers and investors could better understand their legal responsibilities.
Moreover, HPC recommends allowing projects to qualify for safe harbor protections without implying previous securities violations. It also urges regulators to distinguish automated token buybacks from discretionary purchases.
Proposal Seeks Lasting Protection for Developers
Significantly, HPC wants federal protections to remain effective after projects satisfy safe harbor requirements. Otherwise, developers could face separate registration rules across more than 50 jurisdictions.
Besides reducing compliance costs, these changes could encourage domestic innovation and improve American access to blockchain markets. The SEC’s final framework could therefore shape how crypto projects distribute tokens, attract funding, and establish sustainable trading markets.
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