Bitwise Asset Management and the Hyperliquid Policy Center have submitted comment letters to the U.S. Securities and Exchange Commission, asking the agency to revise its proposed crypto rulemaking. The proposal, titled Regulation Crypto Assets, would create an exemption for eligible crypto fundraising and a conditional safe harbor for tokens tied to investment contracts. Bitwise asked the SEC to spell out how investment managers should determine whether a token falls under securities laws. Hyperliquid Policy Center called for a broader safe harbor and clearer rules for airdrops used to reward network participants, token buybacks, whether unregistered intermediaries can facilitate token trades, and whether tokens can trade freely through on-chain protocols. In a separate response, former SEC enforcement official John Reed Stark and Duke University finance scholar Lee Reiners urged the agency to withdraw the proposal, arguing that it exceeds the SEC’s statutory authority and weakens investor protection. The SEC will decide whether to revise, adopt, or withdraw the rule after the public comment period ends, and any final rule would require a commission vote before taking effect.
Bitwise Asset Management and the Hyperliquid Policy Center have submitted comment letters to the U.S. Securities and Exchange Commission, calling on the agency to revise a proposed crypto rule and give clearer guidance on token classification, airdrops, and secondary market trading.
The SEC’s proposed Regulation Crypto Assets would create an exemption for eligible crypto fundraising and offer a conditional safe harbor for tokens linked to investment contracts.
What Bitwise and Hyperliquid asked for
Bitwise said the SEC should clarify the standard investment managers should use when deciding whether a token is subject to securities laws.
The Hyperliquid Policy Center asked the SEC to broaden the scope of the safe harbor and set out clearer rules for airdrops used to reward network participants and for token buybacks. It also asked the agency to explain whether unregistered intermediaries can facilitate token transactions and whether tokens can trade freely through on-chain protocols.
Separate comments called for withdrawal
Former SEC enforcement official John Reed Stark and Duke University finance scholar Lee Reiners, meanwhile, urged the SEC to withdraw the proposal. They argued that the rule goes beyond the agency’s statutory authority and would weaken investor protection.
After the public comment period closes, the SEC will decide whether to revise, adopt, or withdraw the rule. Any final version would need a commission vote before it can take effect.
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