Bitwise, Hyperliquid seek SEC rule changes for token trading, airdrops
The firms are seeking clearer guidance on the classification of crypto assets and secondary-market trading as the SEC’s public comment period comes to a close.
Bitwise Asset Management and the Hyperliquid Policy Center are pressing the US Securities and Exchange Commission (SEC) to revise its proposed crypto rules, seeking clearer guidance on token classifications, airdrops and secondary-market trading in comment letters submitted Monday.
The requests come as the SEC closes public comments Tuesday on its proposed Regulation Crypto Assets, which would create exemptions for qualifying crypto fundraising and a conditional safe harbor for tokens associated with investment contracts.
In an Oct. 19 comment letter, Bitwise Asset Management urged the SEC to clarify how investment managers should determine whether a crypto asset is subject to securities laws, arguing that managers need a standard they can apply using “publicly available information.”
The firm also sought clearer rules on when managers can rely on an issuer’s proposed Form TR filing, which would certify that an investment contract has ceased to exist, and how they should assess tokens when no such filing exists.
Source: US Securities and Exchange Commission
In a separate submission, the Hyperliquid Policy Center urged the SEC to broaden its proposed safe harbor, arguing that it could come too late in a project’s development. The group called for clearer protections for airdrops that reward network participation, as well as guidance on token buybacks.
Hyperliquid also warned that the proposal “fails to provide clarity” on whether unregistered intermediaries can facilitate token trading or whether tokens can trade freely through onchain protocols. It urged the SEC to address secondary-market transactions directly rather than leaving exchanges and decentralized trading venues facing regulatory uncertainty.