TLDR:
- HPC filed a comment letter urging the SEC to adopt Regulation Crypto Assets with five refinements.
- The proposal allows up to $75 million in offerings per 12 months under a fundraising exemption.
- HPC wants the safe harbor usable without a tacit admission of a prior investment contract.
- The group asks that federal preemption survive after a project satisfies the safe harbor.
Regulation Crypto Assets received formal backing from the Hyperliquid Policy Center (HPC), which filed a comment letter with the U.S. Securities and Exchange Commission (SEC).
The group urged the agency to adopt the proposal and recommended five refinements before finalization. The SEC released the proposal in August.
It offers token issuers a federal path through offering exemptions, a new safe harbor, and relief from state-by-state registration requirements. The letter also addresses airdrops, secondary trading, and buybacks.
What the SEC Proposed Under Regulation Crypto Assets
The SEC spent much of 2026 working on token clarity. In March, it issued an interpretation covering several token distributions, including airdrops.
Before that, a 1946 Supreme Court case about Florida citrus groves governed the analysis. As a result, many projects launched abroad or excluded Americans.
In August, the SEC proposed the rule. A startup exemption would allow offerings of up to $5 million over four years.
A fundraising exemption would permit up to $75 million in any 12-month period. Tokens sold under these exemptions would also avoid state registration.
The proposal also adds a safe harbor. It would confirm when a token no longer ties to an investment contract. Certain resales would receive the same state-level relief. Meanwhile, HPC announced its filing on X, where it described the purpose of the proposal.
In that post, the group wrote that builders “could not tell when the securities laws applied to their tokens.” It added that the proposal “gives them a federal path.” HPC also said many developers launched abroad or turned away Americans because of that uncertainty.
Five Refinements to HPC Requests for Regulation of Crypto Assets
The first recommendation concerns airdrops. HPC asks the SEC to write the March analysis into the rule text. The comment anchors that analysis to the “tangible and definable consideration” the Supreme Court requires. It also says wallet connections and sanctions screening should not count as payment.
The second addresses secondary trading. The proposal does not say how onchain protocols may facilitate resales. HPC cites the SEC’s economic analysis, which says benefits “may be fairly small” without a liquid secondary market. Therefore, the group wants clarity at adoption.
The third targets the safe harbor. Projects must certify that their essential managerial efforts are complete. However, HPC says some filers would effectively admit a past investment contract. The group wants a certification that no such contract existed, plus access while development continues.
The remaining two cover buybacks and preemption. HPC wants staff buyback guidance added to the final rule, with a single “central party” definition. It also asks that federal preemption survive once a project meets the safe harbor.
Otherwise, tokens would face registration regimes in more than 50 jurisdictions. HPC said it will keep engaging with SEC staff as the rule is finalized.
