Hyperliquid Policy Center supports SEC crypto asset rule proposal, offers five amendments

On October 20, the Hyperliquid Policy Center (HPC) submitted a comment letter to the U.S. SEC on October 19, supporting its proposed "Crypto Asset Regulation Rules" and offering five amendments: codifying the determination of eligible airdrops into formal rules, clarifying that claiming and compliant operations do not constitute payment of consideration; clarifying the intermediary status of secondary market trading and on-chain protocols; allowing projects using the safe harbor to avoid a default admission that tokens previously involved investment contracts, and extending protection to the development stage; incorporating token buyback guidance that distinguishes buybacks automatically executed under established rules from discretionary buybacks; and ensuring that the exemption from state-level registration requirements remains effective after a project satisfies the safe harbor conditions. The proposal would allow startup projects to issue no more than $5 million in tokens over four years, with a separate financing exemption of up to $75 million per 12-month period.