Hyperliquid Policy Center Calls For Five Changes To SEC Crypto Rule

TL;DR: The Hyperliquid Policy Center supports the SEC’s proposed crypto framework but says five changes are needed to make the rules workable for token developers and markets. The Hyperliquid Policy Center has welcomed the US Securities and Exchange Commission‘s attempt to clarify how securities law applies to crypto assets, while warning that details around distributions and trading could still create unnecessary barriers. In a comment published October 19, the group urged the regulator to revise its proposed Regulation Crypto Assets framework in five areas. Its concerns include how administrative steps in token airdrops are treated, how tokens can trade after an exempt distribution, and whether a safe harbour offers clear enough protection once a project has matured. The centre also wants clearer rules for token buybacks and a consistent approach to the interaction between federal exemptions and state securities requirements. The proposals reflect a long-running problem for cryptocurrency developers. A network token may begin life inside a fundraising arrangement, yet eventually circulate in a system where thousands of participants trade and use it without dealing directly with i