# Hyperliquid Policy Center Seeks Five Changes to SEC Crypto Proposal By Riza Dagoc Canonical URL: https://www.tokenpost.com/news/regulation/34874 Published: 2026-10-19T16:03:22.000Z Updated: 2026-10-19T16:03:22.000Z Section: Regulation > The group backs the framework but wants changes to airdrop treatment, secondary trading, safe-harbor access, buybacks and federal preemption. The Hyperliquid Policy Center (HPC) is backing the SEC’s proposed crypto framework while seeking five changes that would shape how exempt offerings, token trading and project disclosures work. The SEC’s August proposal would permit fundraising of up to $5 million through covered investment contracts involving crypto assets over four years. A separate fundraising exemption would allow up to $75 million in each 12-month period. The proposal also includes a safe harbor for determining when a token is no longer connected to an investment contract. The two fundraising routes have separate caps and timelines. HPC wants the SEC to incorporate its March interpretation of airdrops into the final rule, while extending the analysis to situations beyond those covered by that interpretation. It asks the SEC to clarify that connecting a wallet to receive an airdrop or completing sanctions screening are neither payment of consideration nor additional conditions under the interpretation. On secondary trading, the center seeks clarity on the treatment of both onchain protocols and people or firms that facilitate trades. It wants exempt-offering tokens to be able to trade freely from the outset; the proposed framework does not resolve the status of those intermediaries. The safe-harbor changes would let a project certify that its token was never tied to an investment contract, without first having to acknowledge that it once had such a connection. HPC also seeks to make the safe harbor available to projects that remain in development. For buybacks, HPC wants SEC staff guidance included either in the final rule or its adopting release. It also asks for a standard definition of ‘central party’ and a distinction between programmatic repurchases and those made at discretion. The center’s fifth recommendation would give projects an option to preserve federal preemption after meeting safe-harbor conditions by taking on modified continuing reporting, including an annual certification. HPC says losing preemption could expose transactions to registration or qualification regimes in more than 50 jurisdictions. The comment period ends Oct. 20, a deadline also noted in [earlier coverage of the SEC’s proposed framework](). ## Links in this article - [earlier coverage of the SEC’s proposed framework](https://www.tokenpost.com/news/regulation/34307)