Hyperliquid Policy Center Seeks SEC Clarity on Airdrops and Token Trading

The Hyperliquid Policy Center is asking the SEC to clarify how its proposed crypto fundraising framework would treat airdrops, later token trading and projects that meet a safe harbor. The request comes ahead of the public comment deadline on Oct. 20.

The center supports Regulation Crypto Assets, proposed in August. One exemption would allow eligible startups to raise up to $5 million over four years. A separate exemption would permit qualifying projects to raise up to $75 million in any 12-month period. Issuers would face disclosure requirements, and federal antifraud rules would still apply.

For airdrops of non-security crypto assets, the center wants the final rule to say that a distribution does not create an investment contract when recipients provide no money, goods, services or other consideration in exchange. It also wants routine claim steps, such as connecting a wallet or completing sanctions screening, excluded from that test.

On secondary trading, the center asked the SEC to clarify whether unregistered intermediaries and onchain protocols may facilitate trades in tokens first sold under an investment contract. It also wants later trades in tokens that are not securities treated as outside securities transaction rules.

The other requests concern a safe harbor for tokens no longer tied to an investment contract, the treatment of automatic versus discretionary token buybacks, and federal preemption of certain state registration and qualification requirements. The center wants projects to use the safe harbor without implying that an investment contract previously existed, and to retain a route to protection while development continues. It also wants federal preemption to continue for projects that satisfy the safe harbor.