Hyperliquid Policy Center calls on SEC to exclude airdrops from securities definition.

October 20: The Hyperliquid Policy Center is calling on the U.S. Securities and Exchange Commission (SEC) to exclude airdrops from the definition of securities.

Its specific proposals include: codifying the stance the SEC put forward in March 2026 into rules, namely that free airdrops do not constitute a "money investment" and therefore are not investment contracts; extending this rule to announced airdrops, including periodic or regular distributions, provided that the network is already operational, eligibility is based on usage or contribution (trading, validation, providing liquidity, governance), and the airdrop is not a means of fundraising.

The Hyperliquid Policy Center holds that investment requires tangible and identifiable consideration, and that airdrops are rewards rather than investments; claim processes such as connecting a wallet, signing, paying gas fees, completing KYC/AML, or accepting terms of service should not be regarded as consideration.

In addition, the rule should apply retroactively to past airdrops, or cover Hyperliquid's native airdrop.