Hyperliquid urges five changes to the SEC’s crypto regulation proposal

Free token distributions, decentralized trading and protections for developers are among the issues Hyperliquid Policy Center wants resolved in the SEC’s crypto regulation proposal. The group has submitted five recommendations to the U.S. Securities and Exchange Commission seeking changes to its proposed Regulation Crypto Assets framework before public consultation closes on October 20, 2026. Key takeaways Hyperliquid seeks revisions covering airdrops, trading, developer protections, buybacks and state registration. The group wants unpaid airdrops generally excluded from the investment-of-money requirement. The draft offers qualifying projects fundraising exemptions capped at $5 million and $75 million. Hyperliquid wants federal protections to continue after projects satisfy the safe harbor.

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