Hyperliquid Policy Center Submits Five Revision Suggestions on SEC's Cryptocurrency Regulation Proposal

According to a comment letter submitted by the Hyperliquid Policy Center (HPC) to the U.S. Securities and Exchange Commission (SEC) on October 19, the HPC generally supports the SEC's proposed Crypto Asset Regulation (File No. S7-2026-27) and urges its prompt adoption. The proposal includes a $5 million startup exemption (four-year term), a $75 million fundraising exemption (per 12 months), a safe harbor for investment contracts, and state-level advance applicability provisions for "qualified purchasers." The HPC also puts forward five recommendations: 1. Airdrops: Incorporate airdrop analysis into the final rule text and use "clear and specific consideration" as the criterion for determining a "monetary investment"; 2. Secondary Markets: Clarify the status of secondary market trading and intermediaries, enabling assets issued under exemptions to trade immediately outside the registration framework, and recommend exempting relevant trades and platform determinations under Section 36 of the Exchange Act; 3. Safe Harbor: Its use should not be construed as an admission that an investment contract or issuer status exists, and protections should extend through the period during which key management tasks are being performed; 4. Buybacks: Incorporate the SEC Division of Corporate Financing's recent buyback guidance into the rules, standardize the "central party" concept, and distinguish between programmatic buybacks and discretionary buybacks; 5. Federal Advance Applicability: Issuers meeting safe harbor conditions may opt out of reporting obligations or adopt a simplified annual certification to avoid state regulatory intervention. The HPC stated that without the aforementioned adjustments, the actual